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Wednesday, February 28, 2024

Asia coffee: Vietnam premiums high ahead of fresh bean arrival

HANOI/BANDAR LAMPUNG: Vietnamese robusta beans stayed at hefty premiums this week as fresh beans from the new crop season were yet to arrive in the market, while prices in Indonesia were stable, traders said on Thursday.

Farmers in the central highlands, Vietnam’s largest coffee-growing area, were selling beans for 62,000-63,000 dong ($2.54-$2.58) per kg, lower than last week’s 64,800-66,700 dong.

Meanwhile, some quoted 55,000 dong per kg for new crop beans to be delivered in December, according to traders. Sellers in Vietnam offered 5% black and broken-grade 2 robusta at $200-$400 premium range per metric ton to the January contract, compared with last week’s $200 premium. “Buyers and sellers still cannot agree on prices,” said a trader based in the coffee belt.

“At this point, most traders are likely awaiting beans from the new season.” Another trader from the region said that if the weather allowed, some beans would start to come as soon as end-October.

“The weather now is a mix of rain and sunny spells but sunny days are more welcomed as beans need the sun to fully ripe,” the trader added. Vietnam’s coffee exports in the first nine months of 2023 were 1.25 million metric tons, a fall of 8.3% from the same period of last year, customs data showed.

January robusta coffee sank to its weakest in six months, settling at $2,235 as of Wednesday’s close. “Exports reports from main producers put pressure on future prices, together with the start of the new crop season in Vietnam,” the second trader said.

Indonesian Sumatra beans were offered at $480 premium to the November contract this week, the same as last week.

Asia coffee: Vietnam premiums high ahead of fresh bean arrival

Source: Brecorder

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