Domestic coffee prices rise in Vietnam, premiums up in Indonesia
DOMESTIC coffee prices in Vietnam reclaimed the 100,000 dong (S$5.23) per kg mark this week on concerns about weather conditions that may hurt the next crop, while premiums were up in Indonesia on limited local supplies.
Farmers in the central highlands, Vietnam’s largest coffee-growing area, were selling beans for 100,400 to 101,500 dong per kg, up from last week’s 94,000 to 97,000 dong.
“We’ve seen a lot more rains in May in comparison with previous months but we still have to wait and see,” said a trader based in the coffee belt, adding farmers had sold most of their stocks.
Tuan Loc Commodities said in a note this week that farmers were diligently caring for their plantations and filling every available slot with new young trees after benefiting from good income this season and low fertiliser prices.
Robusta coffee for July delivery settled down US$31 at US$3,402 per metric tonne on Wednesday.
Traders offered 5 per cent black and broken-grade two robusta at a premium of US$600 to US$700 per metric tonne to the July contract.
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Vietnam’s coffee exports in the first four months of 20204 were at 737,797 tons, up 2.8 per cent from last year, customs data showed. Vietnam exported 152,073 tonnes of coffee in April, a decrease of 19.5 per cent from the previous month.
In Indonesia’s Lampung province on Sumatra Island, one trader offered robusta beans at a US$1,200 premium to the July contract, up from US$720 to US$820 two weeks ago amid a drop in London terminal and limited local supply.
Another trader offered US$1,100 to US$1,200 to the July contract.
“This will take a while until the price goes down, the second trader said. REUTERS
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