Rise in Vietnamese coffee prices; Stable Indonesian market – Markets

HANOI/BANDAR LAMPUNG: Vietnam’s domestic coffee prices rose this week on global indices, weaker local currencies and tight bean supplies, traders said Thursday, as the market was flat in Indonesia.

Farmers in the Central Highlands, Vietnam’s largest coffee-growing region, sold coffee for between 45,000 and 47,300 dong ($1.92 to $2.02) per kilogram, down from 44,500 to 46,000 dong last week.

“I think domestic prices could climb to 48,000 dong per kg next week,” said a Ho Chi Minh City-based exporter. “Rising prices in London, the weak dong and the scarcity of beans have pushed up domestic prices. We have been struggling to buy beans in recent months,” the exporter added. Traders said farmers could continue to hold back their leftover beans to fetch better prices.

London robusta coffee in November stood at $49, or 2%, at $2,149 a tonne on Wednesday, the highest level since April this year, according to data from Refinitiv Eikon. Traders in Vietnam quoted 5% grade 2 black and broken robusta at the same level as London prices.

Some have offered a $20 a tonne premium to the November contract. Vietnam’s coffee exports in July fell 17.1 percent from June to 113,852 tonnes, according to government customs data. In the first seven months of 2022, Vietnam exported 1.13 million tons of coffee, up 17.3 percent from a year earlier.

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