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Asia Coffee-Supplies tighten in major Asian coffee markets

Asia Coffee-Supplies tighten in major Asian coffee markets

Reuters · 07/28/2022 03:34
Asia Coffee-Supplies tighten in major Asian coffee markets

By Phuong Nguyen and Mas Alina Arifin

- Trade in Vietnam was slow due to scarce supplies towards the end of its crop season, while bean arrivals have started to decline in Indonesia as the harvest peak has passed, traders said on Thursday.

Farmers in the Central Highlands, Vietnam's largest coffee-growing area, sold coffee COFVN-DAK at 44,200-44,700 dong ($1.89-$1.90) per kg, up from last week's 44,000-44,500 dong range.

"Domestic prices' move is due to tight supplies and in line with global prices, but physical deals have been sealed the past week," said a trader based in the coffee belt.

"Traders have purchased enough. We have to wait until the end of this year for trade to pick up again."

Another trader based in the same region said Vietnamese coffee farmers were enjoying favourable weather for the upcoming crop starting in October.

"Incomes from alternative crops such as pepper and durian have helped Vietnamese coffee growers deal with the current halt on market," the trader said.

Traders in Vietnam offered 5% black and broken-grade 2 robusta COFVN-G25-SAI at a discount range of $100-$130 per tonne to the November contract.

London November robusta coffee LRCc2 settled up $33, or 2%, at $2,007 on Wednesday.

In Indonesia's Lampung province, Sumatran robusta coffee beans for September contract offered at $140 discount, unchanged from last week a trader said.

Another trader said for August and September contract, robusta bean was offered at $50-$60 discount range, compared with $60-$70 discount a week ago.

($1 = 23,358 dong)

(Reporting by Phuong Nguyen in Hanoi, Mas Alina Arifin in Bandar Lampung; editing by Uttaresh.V)

((phuong.@thomsonreuters.com; +84-24-3852-9623;))