HANOI/BANDAR LAMPUNG: Coffee trading in Vietnam continued on a sluggish note this week due to empty stocks, with traders awaiting the new crop season that begins next month, while premiums eased slightly in Indonesia, traders said on Thursday.
Coffee prices continued to edge up this week, with farmers in the central highlands, Vietnam’s largest coffee-growing area, selling beans for 67,300-68,100 dong ($2.77-$2.80) per kg, up from last week’s 65,300-66,500 dong.
“Vietnam has run out of stocks and little left in Indonesia,” said a trader based in the coffee belt. “No selling pressure or purchase competition currently, so the prices will be stable around 65,000-68,000 dong.”
Vietnam’s new crop season begins in October in theory, but beans will not come in bulk until late November, traders said. November robusta coffee settled down $32 at $2,508, as of Wednesday’s close. Meanwhile, Indonesia’s Sumatra robusta beans were offered at a premium of $480 to the November contract this week, down $20 from a week ago. “It is because price was down in London terminal. I reckon the price will continue to go down but in a slow pace,” one trader said.
Source: Brecorder
