Asia coffee: Market awaits new beans in Vietnam; Indonesia premiums rise

HANOI/BANDAR LAMPUNG: Bids and offers remained far apart in Vietnam, with buyers waiting for prices to stabilise ahead of the arrival of fresh beans as the harvest peaks later this month, traders said on Thursday, adding Indonesia premiums rose further on beans scarcity.

Farmers in the central highlands, Vietnam’s largest coffee-growing area, were selling beans for 57,200-58,600 dong ($2.35-$2.40) per kg, compared with 57,700-59,000 dong range a week ago.

Sellers in Vietnam offered 5% black and broken-grade 2 robusta at $120 premium per metric ton to the January contract. Buyers, however, only agree to buy at $40-$50 premiums. To the November contract, sellers quoted $200 premium per metric ton while buyers offered the premium in the $120-$150 range.

“Supplies are limited, so those who have to fulfil their November contracts have to buy at high prices. Meanwhile, January prices are down this week as beans started to tick up,” said a trader based in the coffee belt.

“Hopefully, the prices will start to cool next week when more beans come.” Another trader said it was still sunny at the moment but if it gets warmer, it would be much better for the beans.

Vietnam’s coffee exports in the first 10 months of 2023 were 1.3 million metric tons, a 10.7% decline from the same period last year, government customs data showed on Thursday.