HANOI/BANDAR LAMPUNG, Indonesia -- Domestic coffee prices in Vietnam narrowed this week on rising supplies as the 2020-21 harvest picked up pace, while trade in Indonesia remained subdued due to depleted stocks, traders said on Thursday.
Farmers in the Central Highlands, the country's coffee-growing capital, sold coffee at 32,700-33,400 dong ($1.42-$1.44) per kg, compared with the 33,000-33,500 dong last week.
“Beans from Vietnam are expected to increase over the coming weeks. Farmers are speeding up their harvest as the weather is more favourable now,” said a trader based in the Central Highlands.
The quality of beans from the 2020-21 crop, however, is not as high as the previous ones, another trader based in the same region said.
March robusta coffee settled down $24, or 2%, at $1,364 per tonne on Wednesday.
Traders in Vietnam offered 5% black and broken grade 2 robusta at premiums of $100 per tonne to the March contract, compared with last week's $70-$80 premium range.
Vietnam exported 70,000 tonnes of coffee in November, down 37.5% from a year earlier, government data showed.
While Indonesia exported 26,399 tonnes of robusta coffee beans from Sumatra island’s Lampung province in November, according to local government figures.
Robusta beans from Sumatra island were offered with $200 premium to the January contract this week, up from last week’s$150 premium, a trader in Lampung province said.
“It’s because the benchmark price fell significantly this past week, while beans availability is already very scarce,” the trader said. “Trading activities are already quiet and expected to remain so until after the year-end holidays.”
Another trader offered $250-$270 premiums to the December contract, compared with the $250 premium last week, adding that some farmers were seen selling their stock this week, but the volume remained light.