Asia Coffee-Vietnam prices slip ahead of peak harvest stockpile build up

HANOI/BANDAR LAMPUNG, Indonesia - Vietnam’s domestic coffee prices edged slightly lower on Thursday from a week earlier, as supplies were building up from an on ongoing harvest in the country.

A worker harvests arabica coffee cherries at a plantation near Pangalengan, West Java, Indonesia May 9, 2018. Photo: Reuters

Farmers in the Central Highlands, the country's coffee growing capital, sold coffee at 33,000-33,500 dong ($1.43-$1.45) per kg, compared with 34,000 dong last week.

“Supplies have started to increase as farmers are harvesting their new beans,” said a trader based in the region’s Dak Lak province.

Traders said farmers had harvested around 10% of the crop, adding that the harvest would peak in two weeks.

Output from the 2020-21 harvest would likely fall 10% from the previous harvest of around 27 million 60-kg bags, they added.

Vietnamese traders offered 5% black and broken grade 2 robusta at premiums of $70-$80 per tonne to the March contract. Last week, the premiums were $100-$110 per tonne for January contract.

In Indonesia, robusta beans were offered at $150 premium to the January contract, unchanged from last week.

One of the traders in Indonesia said beans stockpile continues to diminish after a harvest completed there, leading to weak trading activity this week, adding that trade is expected to remain muted for the rest of the year.

“We can only expect some improvement after the new year,” the trader added.

Another trader in Lampung province on Indonesia’s Sumatra island said robusta beans were offered at $250 premium to the December contract, flat from a week ago.