Vietnam coffee market quiet as traders await fresh harvest supplies

HANOI: Vietnam’s coffee market remained largely muted this week as old-crop inventories were largely depleted and fresh supplies from the new harvest were still weeks away, although domestic bean prices edged higher, traders said on Thursday.

Farmers in the Central Highlands, Vietnam’s coffee belt, sold beans at 94,000 dong to 94,800 dong (USD3.62 to USD3.65) per kg, slightly up from last week’s 92,000 dong to 93,000 dong range.

Vietnam officially entered the new crop year on Thursday, but traders said fresh beans are unlikely to arrive in bulk before early November. “Prices for the upcoming harvest have yet to be determined. They will depend on multiple factors, including the situation in Brazil and weather conditions in the Central Highlands next month, although current conditions are favourable for coffee trees,” said a trader based in the region.

November robusta coffee futures settled up USD47 at USD3,422 a metric ton on Wednesday. Traders offered 5percent black and broken-grade 2 robusta at a USD200 per metric ton premium to the November LIFFE contract.