Indonesia's coffee premiums rose this week on a weaker dollar, but gains were capped by an increase in supply due to the start of main harvest in some areas, while trade remained slow in Vietnam at the end of the crop year, traders said on Thursday.
Premiums for Indonesia's grade 4 defect 80 robusta climbed to $40 a tonne to London's July contract from $20-$30 a tonne a week earlier. "Prices should have fallen because of the harvest, but dollar fell significantly (from last week), so the price hike is to compensate that," a trader said. The rupiah has strengthened against the dollar by around 2 percent since last Thursday, according to Thomson Reuters data.
Around 500 trucks of coffee were traded on Monday and around 300 more on Thursday, the trader said. One truck can carry eight to 10 tonnes of beans. In Vietnam, bean prices offered by traders in the Central Highlands the country's main coffee growing region, were around 36,500 dong ($1.60) per kilogram, compared with 35,500-37,500 dong a week earlier, traders said.
Discounts for Vietnam's 5 percent black and broken grade 2 robusta were at $80 a tonne to the September contract, compared with an $80 discount to the July contract a week ago, traders said. Vietnam's May coffee exports are estimated at 140,000 tonnes, bringing the total shipment in the first five months to 825,000 tonnes, or 13.75 million 60-kg bags, edging up 1.8 percent from the same time last year, the General Statistics Office said.
Comments
Comments are closed.