Vietnam Coffee

SLOW COFFEE TRADING IN VIETNAM, INDONESIA AHEAD OF NEW CROP SEASON

Coffee trading in Vietnam remained slow last week as stocks were depleted. Supplies from the new season will not be available until November; traders told Reuters on Thursday.

Farmers in Vietnam’s Central Highlands, the country’s largest coffee-growing region, sold COFVN-DAK beans for 46,600-47,000 dong ($1.95-$1.97) per kg, from 46,400-47,400 dong ($1.94-$1.98) range last week.

Trade, supply, and demand are all dull at the moment.

Price for upcoming harvest has yet been set. It depends on the weather next month although the current condition is favourable for the trees.”

Vietnamese trader in the coffee belt (source: Reuters)

Typhoon Noru recently hit the north of the Central Highlands, Vietnam’s largest coffee-growing region. According to traders, it rained mainly in Gia Lai and Kon Tum provinces and, fortunately, did not have a major impact on crops.

Rains in September and early October do little to no harm to the trees.

Vietnamese trader in the coffee belt (source: Reuters)

Another trader in the same region stated that the harvest season is expected to begin by the end of November, with an output of around 30 million 60-kg bags.

On Wednesday last week, January, Robusta futures on ICE settled up $4 at $2,160 per tonne.

In the Indonesian province of Lampung, coffee bean prices remained unchanged from the previous week.

Located in South Sumatra, Lampung is the largest coffee-growing region in Indonesia, where 60% of the country’s coffee exports come from. Robusta is grown on most of the coffee plantations in the province.

One trader in Lampung offered an $80-$90 discount on the November contract, while another offered a $30-$40 discount on the same contract.

Supply is decreasing as the main harvest has ended.

Traders are competing with each other for beans despite rising prices.”

Indonesian trader (source: Reuters)

Data from a local trade office shows that Indonesia exported 35,952.5 tonnes of Sumatran Robusta coffee beans in August, more than double the shipments in the same month last year.

Photo by RG72, CC BY-SA 4.0, via Wikimedia Commons

Author

  • Dhanliza Cellona

    organisation:

    Dhanliza is a writer based in the Philippines with more than 10 years of experience in editing and writing a wide range of content. She has written over 200 articles for a Japanese pop culture magazine and SEO articles for different clients from the US and the UK.

Leave a Comment

Your email address will not be published. Required fields are marked *

en_GBEnglish