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Asia Coffee-Vietnam domestic prices flat as low stocks hit transactions

Asia Coffee-Vietnam domestic prices flat as low stocks hit transactions

Friday, June 12, 2020, 08:42 GMT+7
Asia Coffee-Vietnam domestic prices flat as low stocks hit transactions
A worker is seen at a coffee warehouse of the coffee company Simexco Dak Lak Limited in Di An City in Binh Duong province, Vietnam July 8, 2019. Photo: Reuters

HANOI/BANDAR LAMPUNG, Indonesia — Vietnam’s local coffee prices remained unchanged from last week on Thursday in low trade, as farmers had almost sold out their stocks. 

Farmers in the Central Highlands, Vietnam’s largest coffee-growing area, sold coffee COFVN-DAK at 32,000 dong ($1.38) per kg, unchanged from a week ago. 

“There’s not much coffee left and so we can’t clinch new deals during the rest of the current crop year,” said a trader based in the Central Highlands. 

The current 2019/20 crop year will officially end at the end of September. 

Farmers will start the new harvest in October. 

The U.S. Department of Agriculture on Tuesday said coffee production in Vietnam was seen falling 3.5% to 30.2 million 60-kg bags in the 2020/21 crop, compared with the previous season due to unfavorable weather. 

Traders in Vietnam said they also expected output of the next crop to be 10%-15% lower. 

“Apart from unfavorable weather condition, consistent low prices have discouraged farmers from taking care of their coffee trees as they have switched to fruit trees for better gains,” another trader based in the coffee belt said. 

September robusta coffee settled up $6, or 0.48%, at $1,253 per metric ton on Wednesday. 

Traders in Vietnam offered 5% black and broken grade 2 robusta COFVN-G25-SAI at $200 premium per metric ton to the September contract, flat from last week.

Meanwhile, in Indonesia’s Lampung province, Sumatran robusta beans were offered with $350 premium to July contract unchanged from last week, one trader said. 

Another trader said premium increased to $350 to August contract, compared to $320 on July contract last week. 

Premium for exports rose as offshore buyers compete for beans with local buyers, the trader said. 

“Local roasters are offering high price for beans,” the trader said. ($1 = VND23,215)

Reuters

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