HANOI/BANDAR LAMPUNG: Coffee prices edged up this week in major Asian robusta beans suppliers Vietnam and Indonesia, as demand remained high while supplies were exceptionally limited, traders said on Thursday.
Farmers in the central highlands, Vietnam’s largest coffee-growing area, were selling beans for 82,700-83,700 dong ($3.36-$3.40) per kg, up from 81,600-82,500 dong range a week ago. “Demand remains high but supply is very tight,” said a trader based in the coffee belt. “It’s very hard to buy. Farmers and dealers are strategic in releasing beans.”
Robusta coffee for May delivery settled down $33 or 1%, at $3,044 per metric ton as of Wednesday close. Traders offered 5% black and broken-grade 2 robusta at a premium range of $400-$450 per ton to the May contract, compared with the $300-$350 premium range last week.
“$400 is just the threshold to break even. Some even quoted as high as $500 premium,” another trader based in the same region said, adding the weather was sunny and dry, and water was sufficient for the trees.
Vietnam exported 398,000 metric tons of coffee in the first two months of 2024, up 16.2% from a year earlier, government data released on Thursday showed. Coffee export revenue in the same period rose 67.5% to $1.25 billion.
Indonesian Sumatra robusta coffee beans for April deliveries were offered at $800 premium this week, up from last week’s $720, one trader said.
Another trader quoted $700 premium to the May contract, up from $640 premium a week ago. “Coffee price rose this week as the demand is higher than supply,” the second trader said.
Source: Brecorder
