HANOI: Vietnam’s coffee trade remained sluggish this week, with the domestic bean market weighed down by low prices and weak demand, while weather conditions in Indonesia were favourable for cherry development, traders said on Thursday.
Farmers in the Central Highlands, Vietnam’s coffee belt, sold beans at 84,800 dong to 85,300 dong (USD3.22 to USD3.24) per kg, down from last week’s 85,300 dong to 86,000 dong range.
“Trade remains very quiet. Some farmers are selling, but not many, mostly those needing cash for fertiliser or pesticides, whose prices have risen sharply in recent months,” said a trader in the region. Robusta coffee for September delivery settled USD67 higher, at USD3,297 a ton on Wednesday.
Another trader said supplies from Indonesia and Brazil could keep Vietnamese prices in a range of 84,000 dong to 87,000 dong per kg. “In the near term, I don’t see any factors that could push prices back to the 90,000 dong level,” the trader added.
Traders offered 5percent black and broken-grade 2 robusta at a discount range of USD20 to USD30 per ton to the September LIFFE contract. Indonesian Sumatra robusta beans were offered at USD150 premium to the September contract, a trader said, compared with last week’s USD110 premium. A coffee farmer in Lampung said current weather and temperatures were supportive for cherry growth.
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