Vietnam's domestic coffee prices have rebounded after hitting the lowest level in four months last week, while trading was lacklustre this week in Indonesia. Farmers in the Central Highlands, Vietnam's largest coffee-growing area, sold coffee at 31,000-31,500 dong ($1.34-$1.36) per kg on Thursday, up from 30,000 dong last week.
"Prices have risen slightly as stockpiles among farmers are low after the 2018/2019 crop year ended last month, while some exporters still need beans to fulfil their signed contracts," a Ho Chi Minh City-based trader said. "However, domestic prices are not likely to rise further as the 2019/20 harvest season will be in full swing from mid-November," he added.
The weather is still favourable with a mix of rainy and sunny days - which traders said would help coffee beans ripen faster and better. "Farmers have already started harvesting the beans but they won't arrive in bulk until mid-November," another trader based in the Central Highlands said. "The harvest often ends in January." January robusta coffee settled down $7, or 0.56%, at $1,241 per tonne on Wednesday.
Traders in Vietnam offered 5% black and broken grade 2 robusta at a $100-$120 premium per tonne to the January contract on Thursday. Meanwhile, Indonesia's grade 4 defect 80 robusta beans were offered at premiums of $260 to the January contract. Last week, the beans were offered at $300 premiums to the December contract.
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