HANOI: Domestic coffee prices in Vietnam on Thursday rose slightly from a week ago, with farmers there and in Indonesia hesitant to sell their beans as they wait for prices to rise further.
Farmers in the Central Highlands, Vietnam’s largest coffee-growing region, sold beans at 95,700-96,200 dong ($3.66-$3.68) per kilogram, up from last week’s 91,600-92,500 dong.
“Farmers refrain from selling as they want to hold their beans until prices are at least above 10,000 dong per kg,” a trader based in Dak Lak province said.
Traders noted slow sales as many buyers bought beans from Indonesia and Brazil at more competitive prices.
“The harvest in Vietnam will begin from October so I don’t think farmers can hold for much longer,” the trader said.
The ongoing floods triggered by tropical storm Wipha are not affecting coffee farms, they added.
“No coffee farms are affected by floods and the rain is actually good for the farms as the coffee beans are in the growing stage,” another trader based in Dak Lak said.
Robusta coffee last traded at $3,300 a metric ton. Traders offered 5% black and broken-grade 2 robusta with a $200-$400 premium to the September LIFFE contract, widening from $130-$160 last week.
In Indonesia, where a harvest is underway, Sumatra robusta coffee beans for September/October contract were offered at a $160 premium, compared with last week’s $150 premium for August-September contract. Another trader said the beans were offered at $150 premium for November contract.
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