Asia Coffee-Prices pick up in Vietnam on global cues, tight supplies
Domestic coffee prices in Vietnam increased somewhat on Thursday, dealers said, due to higher worldwide pricing and restricted supply towards the conclusion of the harvest season.
Refinitiv Eikon data indicated that London prices LRCc2 rose $18, or 1%, to $1,943 per tonne on Wednesday, the highest level since 2018.
“Global prices were pushed up this week by adverse weather conditions in Brazil, and domestic prices inched up this week following a spike in London,” said a dealer in the coffee belt.
“However, farmers have almost no beans left to sell, while demand is low due to the COVID-19 restrictions, and the container crunch is still hampering exports,” according to official data. Vietnam’s coffee exports are expected to drop 9.3% from a year ago to 953,000 tonnes in the first seven months of the year, according to official data.
Meanwhile, merchants claimed that discounts on Indonesia’s Sumatran robusta widened this week as supply remained plentiful throughout harvests and demand was hindered by the increasing coronavirus outbreak.
