HANOI: Domestic prices in Vietnam inched up further this week on more supplies from farmers to cash in and higher London prices, traders said on Thursday.
Farmers in the Central Highlands, Vietnam’s largest coffee-growing region, sold beans at 132,000 to 133,000 dong ($5.19-$5.23) per kg, higher than last week’s 129,500 to 130,500 dong range.
LIFFE robusta coffee for May settled up $158 at $5,821 per metric ton as of Wednesday’s close, but lost $40 as of 1136 GMT on Thursday.
Traders said the harvest had finished and farmers were releasing more to the market at the moment.
“More beans are arriving (at) the market. At the same time, demand is healthy too,” said a trader based in the coffee belt, adding weather was favourable at the moment.
“High prices will encourage farmers to continue investing in coffee production and cultivation for the next crop,” he said.
Asia coffee: Vietnam market upbeat post holidays
According to the Mercantile Exchange of Vietnam, after the holidays, farmers often increase sales, with an average of 200,000 metric tons per month until June so beans in farmer’s storage are still abundant.
“Some potentially are still hoarding in hope for higher prices, so supplies are not so high year. Coffee prices may exceed 135,000 dong per kg in the next few sessions,” Nguyen Ngoc Quynh, deputy head of the agency, said.
In Indonesia’s Lampung province, Sumatra robusta coffee beans were offered at a $350 to $370 discount range to the March and April contract, compared with a $420 to $400 discount last week, a trader said.
Another trader quoted a $350 discount to the May contract, compared with a $400 discount a week ago, adding that prices in the London terminal rose too much and too rapidly.
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