HANOI: Domestic coffee prices in Vietnam dropped below the 100,000 dong per kg milestone this week, pressured by a sharp decline in global prices and sluggish trading activity due to limited supplies, traders said on Thursday.
Farmers in the Central Highlands, Vietnam’s largest coffee-growing region, sold beans at 94,500-95,000 dong ($3.62-$3.64) per kg, down from last week’s 103,000-103,500 dong range.
LIFFE robusta coffee hit a fresh one-year low of $3,524 a metric ton as of Wednesday’s close, down by 4%, according to data compiled by LSEG.
“There is no factor that can support the price at the moment,” said a trader based in the coffee belt.
“Some farmers haven’t sold all of their stocks yet. Given the current prices, it is very unlikely that they will release the remaining beans.”
The United States Department of Agriculture, in a report this week, projected that global production will grow by 4.3 million 60-kg bags from the previous season to a record 178.7 million bags, while consumption is estimated at a new peak of 169.4 million bags.
Asia coffee: Domestic prices hit 1-year low in Vietnam on tepid trade, global cues
Traders offered 5% black and broken-grade 2 robusta in the range of $140-$165 per-ton premium to the September LIFFE contract, compared with last week’s $109-$129 premium range.
In Indonesia, Sumatra Robusta coffee beans were offered at $330 premium this week to the September contract, compared with $235 premium last week as “an adjustment to the sharp fall on London terminal,” one trader said.
Comments
Comments are closed for this article.