Vietnam’s domestic coffee prices fell from last week following the global trend, while in Indonesia supplies from the ongoing mini harvest were scarce due to unfavourable weather, traders said.
Farmers in the central highlands, Vietnam’s largest coffee-growing area, sold beans at 46,300 dong to 47,400 dong (S$2.63-S$2.70) per kg, down from last week’s 47,400 dong to 48,500 dong range.
“That the global prices are falling following not very supportive news from banking sector has dragged down domestic prices although the impact on beans here was nominal,” said a trader based in the coffee belt.
“Farmers have very few beans left to offer and trade is still very tepid as no one is selling.”
Another trader in the same region said coffee trees were blossoming while the weather remained dry.
“It’s still sunny at the moment but if it does not rain next month, it will be worrisome.”
One trader in Vietnam offered 5 per cent black and broken-grade 2 robusta at a discount of US$20 per tonne to the May contract.
Another trader offered the same price as the London price to the same contract.
Meanwhile, Indonesia’s Sumatra robusta coffee beans this week were offered at a US$135 premium to the July contract, compared with a US$70 premium to the May contract.
“The increase was due to the drastic fall in London prices and the bean shortage during the mini harvest caused by heavy rains,” one of the traders said.
Another trader said coffee prices slightly changed this week, quoted at a US$100 to US$120 premium to the May and June contracts, compared with a US$100 premium last week to the May contract.
Source: The Business Times