Supplies were piling up thanks to a harvest in Vietnam, but domestic prices remained stable this week as the main coffee-producing region could face rains triggered by an upcoming storm, which could possibly hamper the process. grain drying.
Farmers in the central highlands, Vietnam’s largest coffee-producing region, sold coffee for between 40,400 dong ($ 1.76-1.81 $) per kg, unchanged from last week .
“The supply has started to increase as the farmers harvest their new beans,” said a trader based in the coffee belt.
âThe weather is improving and getting drier, but we are concerned about the storm ahead. If it hits the central highlands and triggers rains, the bean drying process will be greatly affected and the quality of the beans will be affected.
The Vietnamese Coffee and Cocoa Association (Vicofa) said earlier this week that coffee production in the current 2021/22 crop year may decline as old coffee trees have not been rejuvenated as some farmers have moved on. to other fruit trees to earn more.
November London ICE futures were up $ 6, or 0.26%, to $ 2,303 a tonne on Wednesday.
Vietnamese traders offered 5% grade 2 black and broken robusta with a discount of $ 400 a tonne on the March contract, down from a discount range of $ 430 to $ 400 last week.
In Indonesia’s Lampung province, Sumatra robusta beans were offered at a $ 250 discount from the March contract, unchanged from last week, a trader said.
âThe supply is running out, which should have increased the price, but as the benchmark price increased, the discount remains unchanged,â the trader said.
Another trader offered discounts of $ 200 to $ 220 on February and March contracts, narrowing from last week’s discounts of $ 220 to $ 250 for those contracts.
âThe availability of containers is always a problem and the cost of freight is too high. It is difficult to find space for containers, especially towards Singapore,â said the second trader.