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ASIA COFFEE-Vietnam prices rise on high demand, low supplies

ASIA COFFEE-Vietnam prices rise on high demand, low supplies

Saturday, February 24, 2024, 10:57 GMT+7
ASIA COFFEE-Vietnam prices rise on high demand, low supplies
A file photo of roasted coffee beans seen at the coffee company of Simexco Dak Lak Limited in the town of Di An in Binh Duong Province, southern Vietnam, July 8, 2019. Photo: Reuters

HANOI/BANDAR LAMPUNG -- Vietnam coffee prices rose this week on higher exporter demand after the Lunar New Year, but some farmers are still holding on to beans in hope for higher prices, traders said on Thursday.

Farmers in the central highlands, Vietnam's largest coffee-growing area, were selling beans COFVN-DAK for VND81,600-82,500 ($3.32-$3.36) per kg, up from VND78,900-79,200 last week.

"Demand is high as exporters need beans to fulfil their contracts but beans are too expensive and hard to buy," said a trader based in the coffee belt.

"The situation may persist until April when Indonesian farmers start to release beans."

Another trader said the weather was favorable at the moment for the trees.

Vietnam exported 238,266 metric tons of coffee in January, up 67.4 percent from a year earlier and 14.8 percent from the previous month, customs data showed. Revenue reached $726.6 million, up 133.7 percent from January 2023.

Robusta coffee LRCc2 for May delivery settled up $31 or one percent, at $3,177 per metric ton as of Wednesday close.

Traders offered five-percent black and broken-grade 2 robusta COFVN-G25-SAI at a premium range of $300-$350 per ton to the May contract.

Premiums for Sumatran robusta beans in Indonesia's Lampung jumped from last week, traders said, as demand rose while farmers are still waiting for coffee cherry harvests.

One trader offered $720 premium to the April contract, up from $550 on March contract last week.

"This is because there is no more beans," the trader said.

A small coffee harvest in Lampung province and the surrounding area in southern regions of Sumatra typically starts in March or April, and the main harvest usually starts around June.

Another trader offered $640 premium to the May contract, up from $600 premium last week, noting that demand was strong this week.

($1 = VND24,585.0000)

Reuters

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