HANOI/BANDAR LAMPUNG, (Indonesia): Coffee prices fell in Vietnam this week following weaker London prices and due to low demand and supplies at the end of the crop season, traders said on Thursday, while premiums eased in Indonesia on ample supplies.
Farmers in the Central Highlands, Vietnam’s largest coffee-growing area, were selling beans for 124,000-125,000 dong ($4.90-$4.94) per kg, down from last week’s 127,000-127,000 dong.
Traders offered 5% black and broken-grade 2 robusta at a premium of $550-$600 per metric ton to the September contract. “There is not much coffee left, mainly for the domestic market,” said a trader based in the coffee belt. “Firms do not take the risk of signing new contracts at the moment due to fluctuating prices, uncertain supplies and quite high transportation costs.”
Robusta coffee for September delivery settled down $154 at $4,327 per metric ton as of Wednesday’s close. “Domestic market is really tepid. Global robusta price may reach another peak but it is unlikely to happen to domestic prices from now till the end of this year,” said Nguyen Ngoc Quynh, deputy chief of Mercantile Exchange of Vietnam.
In Indonesia, Sumatra robusta coffee beans were offered at $600 premium to the August and September contracts, unchanged from last week, a trader said. Another trader quoted $520 premium to the September contract, lower than the $630 premium a week ago, as “beans are flooding the market”.
Farmer in Lampung region said dry weather during the flowering phase had supported the coffee tree a lot.
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