HANOI/BANDAR LAMPUNG, (INDONESIA): Coffee prices in Vietnam inched higher, with trading activities coming to a halt due to a prolonged shortage of robusta beans, while prices in Indonesia fell this week amid high London prices, traders said on Thursday.
Farmers in the Central Highlands, Vietnam’s largest coffee-growing area, were selling beans for 127,000-127,700 dong ($5.00-$5.02) per kg, up from 120,000-122,000 dong a week ago.
“Domestic prices were up following a surge in global market due to lower shipments from Vietnam,” a trader based in the coffee belt said. “Activity is very tepid now and will remain this sluggish until at least early November. Only those who have to fulfil their contracts will buy at this current sky high price.”
The price of robusta beans has risen 63% this year, peaking on Tuesday at $4,667 a metric ton on the London-based ICE Futures Europe market. Vietnam’s coffee exports in the first half of this year were 893,820 tons, down 11.4% from a year earlier, customs data showed. Vietnam exported 70,202 tons of coffee in June, a decrease of 11.5% from the previous month.
Another trader based in the same area said current weather condition was favourable for the coffee cherries to grow. Traders offered 5% black and broken-grade 2 robusta at a premium of $600 per ton to the September contract. In Indonesia, Sumatra robusta beans were offered at $750 premium per ton to the August contract, $200 less than last week, a trader said.
Another trader quoted $770 premium per ton to September contract, down from $950 premium a week ago, adding prices were quite volatile.
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