HANOI/BANDAR LAMPUNG, (Indonesia): Coffee trading activity in Vietnam remained sluggish this week, traders said on Thursday, as supplies were tight and beans from the new harvest were not yet available.
Farmers in the Central Highlands, Vietnam’s largest coffee-growing area, sold beans for 112,800-113,500 dong ($4.54-$4.57) per kg, down from last week’s 116,200-117,200 dong.
Robusta coffee for November delivery settled up $17 at $4,701 per metric ton as of Wednesday’s close. “The prices have fallen sharply in recent days, mainly due to the sentiment caused by the proposal to postpone the implementation of the European Commission’s anti-deforestation law,” said Nguyen Ngoc Quynh, deputy chief of the Mercantile Exchange of Vietnam.
“The gradual start of Vietnam’s harvest has not yet put any pressure on prices as the market is still concerned over the weather, especially potential impacts of La Nina.” Vietnam exported 1.1 million tons of coffee in the first nine months of this year, down 11.5% from a year earlier, government data showed. However, export revenue for the period rose 37.8% to $4.3 billion.
In Indonesia, Sumatra robusta coffee beans were offered at $50 premium this week to the December contract as the London terminal has declined significantly.
Another trader said beans were quoted at $70 premium to the December contract this week, while the premium is at $80 to the January contract compared with $200 discount last week “to adjust to London prices that were down from more than $5,000 per ton last week.”
Source: Brecorder
