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Wednesday, December 1, 2021

Asia Coffee: Vietnam muted ahead of new harvest season

BANDAR LAMPUNG: Trading in major Asian coffee producers remained tepid on Thursday, with Vietnam seeing low activity ahead of new crop season that will officially begin next month while the harvest phase was almost over in Indonesia, traders said.

Farmers in the Central Highlands, Vietnam’s largest coffee-growing area, sold coffee at 39,300-41,000 dong per kg ($1.73-$1.80), slightly down from last week’s range of 39,900-41,400 dong.

London ICE November futures on Wednesday fell 1.6% to $2.110 a tonne.

“The fall in London prices was due to Vietnam’s reopening after lockdowns, easing global worries and the rise in monthly coffee exports from Vietnam,” a trader based in the coffee belt said.

Vietnam’s coffee shipments in September were estimated at 120,000 tonnes, up 20.3% against the same period last year, although exports in the first nine months of this year were expected to show a 4.2% drop, official data showed.

New harvest officially starts from October, however, fresh beans will come in bulk only from November.

“Trade will remain this thin for a few more weeks,” another trader said, adding that weather was still supportive for the crop.

Traders in Vietnam offered 5% black and broken grade 2 robusta at discounts of $250-$280 per tonne to the November contract, compared with the $280 discount last week.

In Indonesia’s Lampung province, Sumatran robusta beans were offered at $280-$300 discounts to the November and December contracts, unchanged from last week, a trader based in the region said.

Another trader said discount widened to $330 from $300 to the January contract.

“The harvest is over now, while demand is weak,” one of the traders said.

Asia Coffee: Vietnam muted ahead of new harvest season

Source: Brecorder

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