HANOI: Vietnam’s domestic coffee prices continued to decline ahead of the peak of the harvest amid weaker global prices, while premiums rose in Indonesia, traders said on Thursday.
Farmers in the Central Highlands, Vietnam’s coffee belt, sold beans at 88,000 dong to 89,000 dong (USD3.40 to USD3.44) per kg, down from 91,000 dong to 92,500 dong last week, marking the lowest since mid-June according to LSEG data.
January robusta coffee futures settled down USD21, or 1 percent, at USD3,199 a metric ton on Wednesday. “Farmers have started harvesting, but volumes remain limited.
Supplies are likely to become more abundant next month,” said a trader in the Central Highlands. “Some farmers said adverse weather earlier in the year resulted in a small portion of their crop producing smaller and darker beans,” the trader added.
Another trader in the region said low prices had discouraged farmers from accelerating the picking and drying of coffee cherries. The trader offered 83,000 dong per kg for delivery in December Traders offered 5 percent black and broken-grade 2 robusta at a premium of USD150 to USD200 per ton to the January LIFFE contract.
In Indonesia, Sumatra robusta coffee beans were offered at a USD220 premium to the November contract, up from last week’s USD165-USD200 premium, a trader said. Another trader quoted a USD300 premium to the January contract, higher than USD230 premium last week.
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