HANOI: Vietnam’s domestic coffee prices were flat this week, as low stocks and rising supplies from other producers impacted trading activity, while premiums fell in Indonesia following global cues, traders said on Thursday. Farmers in the Central Highlands, Vietnam’s largest coffee-growing region, sold beans at 94,700-95,200 dong ($3.62-$3.64) per kg, little changed from last week’s 94,500-95,000 dong range.
Rising supply of beans from Indonesia and Brazil were weighing on prices. The US administration on Wednesday said it closed a trade deal with Vietnam that includes a 20% tariff on goods coming to the United States. “It is a relief for all exporters, although the US is not Vietnamese beans’ main destination,” said a trader based in the coffee belt. LIFFE robusta coffee settled down $58, or 2%, at $3,602 per metric ton on Wednesday.
Another trader based in the region said activities remained quiet as most market participants were taking cautious steps. Traders offered 5% black and broken-grade 2 robusta in the range of $70-$80 per ton premium to the September LIFFE contract.
In Indonesia, Sumatra robusta coffee bean exports in May were 34,056.2 tons, up 137% on a monthly basis, data from the local trade office showed earlier this week.
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