ASIA COFFEE-Vietnam domestic prices, Indonesia premium rise on thin supplies
Friday, January 26, 2024, 13:31 GMT+7
HANOI/BANDAR LAMPUNG -- Vietnamese coffee prices extended gains on Thursday on concerns about thin supplies, traders said on Thursday.
Farmers in the central highlands, Vietnam's largest coffee-growing area, were selling beans COFVN-DAK for VND73,000-75,000 (US$2.97-$3.05) per kg, up from VND71,000-72,900 last week.
"Prices have edged higher as farmers refrain from selling their beans to traders on anticipation of higher prices due to the Red Sea tensions and low London inventories," said a trader based in the coffee belt.
"Many exporters are finding it hard to secure enough coffee to fulfil their signed contracts."
Another trader said farmers are still holding around 70 percent of the beans harvested in the 2023-24 crop.
March robusta futures LRCc2 on Wednesday settled $25, or 0.8 percent, higher at $3,207 a ton, after peaking at $3,254 earlier - the highest since the current form of the contract started trading in January 2008.
In Indonesia, Sumatra robusta coffee premium widened this week, also on thin supplies.
Sumatra robusta bean is offered at a $500-520 premium for the February-March contract this week, compared with last week's premium of $500.
A trader said the premium widened to $500 this week from $450 last week, adding that the trend "will continue for a while, at least until the expected main harvest in April and June."
(US$1 = VND24,595)
