HANOI/BANDAR LAMPUNG: Vietnamese coffee prices extended gains this week as farmers refused to sell beans in hopes of better prices amid shipping disruptions, while Indonesian premiums fell, traders said on Thursday.
Farmers in the central highlands, Vietnam’s largest coffee-growing area, were selling beans for 71,000-72,900 dong ($2.89-$2.97) per kg, compared to 69,800-72,000 dong last week.
“Prices keep making new peaks as supplies are very scarce now. Buying beans is a competition now,” said a trader based in the coffee belt. “The situation is not positive at all... Many (traders) have already been late for their deliveries of their signed contracts as they failed to secure beans.”
March robusta coffee has gained $218 in a week, at $3,156 per ton as of Wednesday. “Inventories on the London exchange hit record low as a result of bean shortage in Vietnam, pushing the prices up,” the second trader said.
Traders offered 5% black and broken-grade 2 robusta at a premium of $20-$25 per metric ton to the May contract. In Indonesia, Sumatra robusta coffee beans were offered at $500 premium to the February-March contract this week, $50 below last week’s premium.
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