JavaScript is off. Please enable to view full site.

Asia Coffee-Tight supply keeps market quiet in Vietnam, Indonesia supplies rise

Thursday, July 02, 2020, 18:03 GMT+7
Asia Coffee-Tight supply keeps market quiet in Vietnam, Indonesia supplies rise
Coffee beans are seen displayed for sale at a shop in Hanoi, Vietnam June 30, 2017. Photo: Reuters

HANOI/BANDAR LAMPUNG, Indonesia -- Trade in Vietnam’s coffee market ground to a virtual halt due to a lack of beans, while domestic prices in Indonesia fell this week as supplies continued to rise, traders said on Thursday.

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

“There’s almost no coffee left at the moment, so we can’t sign new export contracts for delivery 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 and farmers will start the new harvest in October.

September robusta coffee extended its rebound on Wednesday, settling up $17, or 1%, at $1,204 per tonne.

“But the London price is still too low. We could only make gains if it is above $1,250,” the trader said.

Traders in Vietnam offered 5% black and broken grade 2 robusta at $200 premium per tonne for the September contract, down from $240 premium last week.

Meanwhile, Indonesia’s Sumatran robusta beans are traded at $300 premium this week to the September contract, down from last week’s $340 premium, according to a trader in Lampung province.

Higher supply due to harvests has helped keep prices down, aided by a stronger dollar against the rupiah, the trader said.

“Supply has increased this week, we are seeing double incoming beans than the previous weeks,” the trader added.

Another trader said the premium remain unchanged at $350-$370 this week due to stiff competition from local buyers.

Indonesia exported 14,172 tonnes of robusta coffee beans in June from its province of Lampung on the island of Sumatra, trade office data showed on Wednesday.

Reuters

More

Read more

;

Photos

VIDEOS

Experience summer sand-boarding in Mui Ne

Sand-boarding, a popular activity amongst local children in the coastal tourism town of Mui Ne in south-central Vietnam, is attracting hundreds of tourists to the Red Sand Dunes

Young maple trees given better protection as Hanoi enters rainy season

The trees are currently growing well, with green leaves and healthy branches.

Hunting skinks for food in southern Vietnam

Skink meat is known to be soft, tasty, and highly nutritious.

Vietnamese-made app allows people to grow real veggies via smartphone

Nguyen Thi Duyen, a young engineer in Hanoi, developed the app and its related services to help busy people create their own veggie gardens.

Chinese tourists hit by Vietnamese over dine and dash

Four Chinese were reportedly injured, with one having a broken arm.

Latest news