HANOI: Coffee prices in Vietnam rose from a week ago on Thursday following a global price recovery, while demand was strong in Indonesia amid depleting stockpiles, traders said.
Farmers in the Central Highlands, Vietnam’s largest coffee-growing region, sold beans at 107,000-110,000 dong ($4.07-$4.19) per kg, up from 100,000-100,700 dong a week earlier.
Robusta coffee last settled up $171 at $3,799 a metric ton as of Wednesday’s close, its highest level since late June. “Amid global gains, the domestic market situation remained the same as the past few weeks,” a trader based in the coffee belt said. “Foreign demand is thin due to high prices and global uncertainties.
At the same time, many warehouses are not currently buying as they’re waiting for more supply in October-November and clearer market signals.” Traders offered 5% black and broken-grade 2 robusta at a premium of $400-$500 per ton to the November LIFFE contract.
In Indonesia, Sumatra robusta coffee beans were offered at a $180 premium to the September contract, up from a $150 premium to the September/October contract last week, a trader said.
“We are scrambling to buy beans because the harvest is almost over. Supply is depleted, while demand remains high,” the trader said. Another trader quoted a $150 premium to the November contract, up from the $100 premium last week.
A coffee farmer in Lampung expects the harvest to end in late August or early September, adding that about 80% of the harvest has been gathered.
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