Asia Coffee-Vietnam's coffee unharmed from storm; supplies tighten in Indonesida
Asia Coffee-Vietnam's coffee unharmed from storm; supplies tighten in Indonesida
Coffee plants in Vietnam suffered no harm from the tropical storm sweeping through the country, while premiums in Indonesia rose as supplies tightened at the end of the harvest, traders said on Thursday.
Farmers in the Central Highlands, Vietnam's largest coffee-growing area, sold coffee at 31,300-32,800 dong ($1.35-$1.42), compared with the 31,300-31,800 dong range last week.
Intense rains since early October have caused floods and mudslides in Vietnam, with more heavy rainfall expected on several fronts until early next week.
Although floods have caused at least five deaths in the Central Highlands, they did not harm the crop, traders said.
“If it rains in mid-November, that will be worrisome. But at this point good rains actually have been nourishing coffee plants,” said a trader based in the coffee belt.
Another trader said most traders were waiting for new beans to arrive, expected in a month, limiting trading activity.
January robusta coffee settled up $26, or 2%, at $1,276 per tonne on Wednesday.
Traders in Vietnam offered 5% black and broken grade 2 robusta at premiums of $150-160 per tonne to the January contract, compared with a premium of $150 per tonne last week.
Vietnam’s coffee exports in September fell 0.5% from August to 99,735 tonnes, government customs data released on Monday showed.
In Indonesia’s Lampung province, Sumatran robusta beans were offered at a $170 premium to the January contract, a trader said, compared with the $150 premium to the November contract last week.
“This is because supply is starting to drop,” the trader said, as the coffee harvest in the southern region of Sumatra island ends.
Another trader based in the region offered a premium of $270 to the November contract, unchanged from last week, adding he believed many middlemen in Lampung were still holding some beans supply.
“They are not going to sell until they see good pricing,” the trader said.
