HANOI: Vietnam’s domestic coffee prices fell on Thursday, tracking sharp declines in global markets and amid sluggish trade caused by a mismatch between bid and ask prices, traders said.
In the Central Highlands, farmers sold beans at 93,800 dong to 94,800 dong (USD3.61 to USD3.65) per kg, lower than last week’s 101,200 dong to 102,300 dong range.
Robusta coffee for May delivery has shed USD348 so far this week, settling at USD3,689, as of Wednesday’s close, its lowest level since December 17, according to LSEG data.
“Prices dropped because of higher supplies from Brazil, the main coffee producer, along with positive export results from Vietnam and Indonesia,” said a trader based in the coffee belt. Indonesia’s exports of Sumatra robusta coffee beans stood at 32,500.3 metric tons in December, a 52percent increase from a year earlier, official data showed.
Another trader in the same region said a gap has emerged between bid and ask prices as farmers and exporters hold differing expectations. “Farmers are not under pressure to sell ahead of Lunar New Year as they were in the past while demands still exist as exporters need to fulfil their contract obligation. Many already sold at 100,000 dong per kg and are now watching the market,” the trader said.
“Some farmers have already shifted into holiday mode, and with prices this low, they are even more reluctant to sell,” the trader added. In Indonesia, Sumatra robusta coffee beans to the March contract were offered at USD280 premium, up from USD185 premium last week, “due to a limited supply, as main harvest is not here yet,” one trader said. Another trader said the premium to the March contract was quoted at USD350, up from USD200 premium last week to the May contract. Coffee farmers in West Lampung said the coffee beans were quite large at the moment despite limited volume.
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