Asian Coffee: Prices Rise in Vietnam as Trade Stagnates

Vietnam/Indonesia: Coffee prices in Vietnam increased, with trading activities stagnating due to a prolonged shortage of Robusta coffee, while prices in Indonesia fell this week amid high London prices.According to some merchants, farmers in the Central Highlands, the largest coffee-growing region in Vietnam, are selling coffee beans for 127,000–128,500 VND (5.02–5.05 USD) per kg, up from 120,000 VND. 122,000 VND a week ago.
“Domestic prices increased following a surge in the global market due to a decrease in exports from Vietnam.” “Activity is currently very quiet and will continue to be so until at least early November.

Only those who must complete the contract can buy it at the current extremely high price.” Robusta coffee prices have jumped 63% this year, peaking Tuesday at $4,667 a ton on London-based ICE Futures Europe.
Customs data shows that Vietnam’s coffee exports in the first half of this year were 893,820 tons, down 11.4% from a year earlier. Vietnam exported 70,202 tons of coffee in June, down 11.5% from the previous month. Another trader in the same area said current weather conditions are favorable for coffee growing.

Traders offered 5% black and broken type 2 Robusta coffee with an additional 600 USD/ton for the September contract. In Indonesia, Sumatra Robusta coffee was offered 750 USD/ton higher than the August contract. and $200 lower than last week, a trader said.

Another trader quoted a higher price of $770/ton for the September contract, down from a high of more than $950 a week ago, adding that prices were quite volatile.

Source: Tincaphe Editorial Board