HANOI/BANDAR LAMPUNG, (Indonesia): Domestic coffee prices in Vietnam inched up on higher demand and limited supplies despite harvest peak, traders said on Thursday, while premiums on Indonesian beans rose tracking global cues.
Farmers in the Central Highlands, Vietnam’s largest coffee-growing region, sold beans for 114,800-115,300 dong ($4.52-$4.54) per kg, compared to 110,100-110,800 dong last week.
Robusta coffee for January delivery settled up $142 at $4,798 per metric ton as of Wednesday’s close. “Demand has slightly picked up, pushing the domestic prices to rise higher but supplies are still very thin,” said a trader based in the coffee belt.
“Unlike previous years, farmers are not facing financial pressure as they can cash in from durian or peppers instead so the harvesting activities are not as robust and they are not in a rush to sell beans,” the trader added.
Another trader from the same region said farmers had just harvested up to 20% of their crop. “The weather now is sunny and dry, which is favourable for harvesting activities,” the second trader said.
“With the pace, farmers will done harvesting by mid-December.” The Mercantile Exchange of Vietnam said in a note this week that exports would increase significantly from December if harvesting activities went well.
Traders offered 5% black and broken-grade 2 robusta at a discount range of $150-$200 to the January contract. In Indonesia, Sumatra robusta beans were offered at $120 premium to the December contract, a $10 increase from a week ago, according to a trader in Bandar Lampung.
Another trader quoted a $120 premium to the January contract, $60 higher than last week “due to a surge in London terminal last night.”
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