BANDAR LAMPUNG: Farmers in Vietnam have held back from selling coffee beans due to unattractive prices, traders said Thursday as trade remained sluggish in major coffee markets across Asia.
Farmers in the central highlands sold coffee at 38,800-40,700 dong ($1.71-$1.80) per kg, down from last week’s range of 39,300-41,000 dong .
“Prices are no longer attractive enough for farmers to release beans,” said a trader based in the coffee belt, adding that there is also weak demand due to the prolonged transport disruption.
Farmers had sold 20-30% of their stocks, traders said.
Traders in Vietnam offered 5% grade 2 black and broken robusta at discounts of $250 to $270 a tonne from the May contract, down from $240 to $250 last week. Another trader quoted a $400 discount on the May contract.
March robusta coffee rose $30, or 1%, to $2,225 a tonne on Wednesday. Vietnam’s coffee exports in December rose 57.6% from November to 169,349 tonnes. Vietnam exported 1.56 million tons of coffee last year, down 0.2 percent from 2020, Vietnam customs said in a statement.
In Indonesia’s Lampung province, robusta beans were offered at a discount of $120 a ton for February shipments, down from a discount of $170 last week, a trader said. Another trader offered a $250 discount on the March contract, unchanged from last week. Bean availability remains low, but traders expect supplies to pile up when a mini-harvest begins in April.