Prices fall in Vietnam on global cue, ample supplies in Indonesia

Published 2024년 7월 26일

Tridge summary

Coffee prices in Vietnam have dropped due to weaker London prices, low demand, and limited supplies as the crop season ends. Farmers in the Central Highlands are selling beans at lower prices than last week. Traders are hesitant to sign new contracts because of price fluctuations, uncertain supplies, and high transportation costs. In Indonesia, robusta coffee beans are offered at varying premiums, with ample supplies affecting prices. The domestic market in Vietnam remains sluggish, and significant price increases are unlikely for the rest of the year.

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Original content

Coffee prices fell in Vietnam this week following weaker London prices and due to low demand and supplies at the end of the crop season, traders said on Thursday, while premiums eased in Indonesia on ample supplies. Farmers in the Central Highlands, Vietnam’s largest coffee-growing area, were selling beans COFVN-DAK for 124,000-125,000 dong ($4.90-$4.94) per kg, down from last week’s 127,000-127,000 dong. Traders offered 5% black and broken-grade 2 robusta COFVN-G25-SAI at a premium of $550-$600 per metric ton to the September contract. “There is not much coffee left, mainly for the domestic market,” said a trader based in the coffee belt. “Firms do not take the risk of signing new contracts at the moment due to fluctuating prices, uncertain supplies and quite high transportation costs.” Robusta coffee LRCc2 for September delivery settled down $154 at $4,327 per metric ton as of Wednesday’s close. “Domestic market is really tepid. Global robusta price may reach another peak but it ...

Source: Hellenic Shipping News