Asia Coffee-Vietnam prices edge up on scarce supplies, stocks rise in Indonesia
HANOI/BANDAR LAMPUNG, Indonesia - Domestic coffee prices in Vietnam rose this week due to tight supplies, while inventories in Indonesia continued to build up, traders said on Thursday.
A worker shows coffee green beans at coffee company Simexco Dak Lak Limited in the town of Di An in Binh Duong province, Vietnam July 8, 2019. Picture taken July 8, 2019. Photo: Reuters
Farmers in the Central Highlands, Vietnam’s largest coffee-growing area, sold coffee at 32,000 dong ($1.38) per kg, higher than the 31,300-31,700 dong range a week ago.
“Farmers are reluctant to sell beans at this price, which is under the production cost of 33,000 dong, while some farmers have already sold pepper, planted alongside coffee trees, to cover their needs,” said a trader based in the region.
“Demand still exists but no one can buy at this price. It’s too high for us (traders) to make profit.”
Another trader in the region said he saw no factors for prices to rise at the moment and expected the prices to be around 30,600-32,000 dong per kg for the next month.
September robusta coffee settled down $9, or 1%, at $1,176 per tonne on Wednesday.
Traders in Vietnam offered 5% black and broken grade 2 robusta at $240 premium per tonne for the September contract, down from $250-$260 premiums last week.
Meanwhile, traders in Indonesia’s Lampung province on Sumatra island said premiums for robusta beans remain unchanged from last week despite higher supply, as overseas buyers continue to face tough competition from domestic buyers.
One trader said premiums for Sumatran robusta were at $340 to the September contract, while another trader offered premium at $370 to the August contract.
Volume of trade is starting to increase as Lampung starts its main coffee harvest, but Indonesia’s big instant coffee manufacturers are beating exporters with high pricing, one of the traders said.
“It is difficult for prices to come down still,” he added.
Related news
Vietnam domestic coffee prices flat as low stocks hit transactions Vietnam’s local coffee prices stayed flat from last week on Thursday in low trade, as farmers had almost sold out their stocks.
NZ supports Binh Dinh to introduce safe vegetable brand La Lanh brand provides high-quality vegetables that consumers can trust.
Mekong delta shifts to swine breeding in value chains Cattle and poultry breeding is one of the strength in the Mekong delta region, however, animal husbandry has faced difficulties including often falling in price
Vietnam's banana exports go up, join $17 billion glass bam market Bananas are now in very high demand. Le Sy Cong, director of Laba Da Lat said the demand is extremely high and the supply is not enough.
June's pepper exports up 58.8 per cent Việt Nam exported 35,000 tonnes of pepper in June worth US$85 million, increasing by 58.5 per cent in volume and 20 per cent in value year-on-year.