Falling domestic prices for coffee in Vietnam, while new batches enter the Indonesian market.
Scoop on Asian Coffee Prices:
Hopping Java Prices:
Coffee prices in Vietnam dipped on Thursday, while discounts in Indonesia narrowed as fresh harvest beans hit the market, according to traders' statements.
In Vietnam's Central Highlands, the main coffee-producing region, farmers are now peddling beans for 125,700-126,200 dong ($4.85-$4.87) per kg, a decrease from the last week's 128,000-129,000 dong. The LIFFE Robusta coffee slipped 2% to $5,010 a ton, its lowest in a month, as of the previous day's closing.
"The burgeoning Robusta stockpile under the watch of ICE has fueled the pressure on prices," a trader based in Ho Chi Minh City noted. The trader further explained that the projected rise in robusta coffee output for the 2024/25 crop year, along with incoming Indonesian supplies, helps assuage supply concerns and contributes to the price decline.
*Vietnam & Indonesia Coffee Prices: A Slip-slide*
Traders quoted 5% black and broken-grade 2 robusta at a discount range of $80-$100 to the July LIFFE contract. One trader reported minimal supplies currently available, whileers in Vietnam are hoarding their beans, given the current lower prices, and offers are still limited in Brazil and Indonesia.
In Indonesia, Sumatra beans were offered at a $20 discount to the May contract, compared to last week's $70 discount, as per one trader. Additionally, an average of 1,500 metric tons of green beans are being harvested daily, though supplies are still scarce. Another trader mentioned beans being quoted at a $70 discount to the July contract, contrasting last week's $150 discount.
A third trader forecasted future output to be approximately 5% higher than the previous one.
Current Coffee Price Tendencies in Asia:
The pricing of Asian coffee, namely in Vietnam and Indonesia, is driven by various factors. These include global demand and supply dynamics, local weather conditions, and trade dynamics. Overall, coffee prices have surged since 2022, escalating by 32.5% from February 2022 to February 2025, due to factors such as climate change and escalating demand in Asian countries.
New harvests in Vietnam and Indonesia can reshape the market by potentially raising supply and lowering prices if the climate cooperates and yields are bountiful. In contrast, unfavorable weather could maintain or push prices higher, while also being influenced by global market demand and trade friction.
The outlook for the Asian coffee market points to steady prices in some regions, yet overall market dynamics remain sensitive to global influences like climate change and swelling demand. The decaffeinated coffee market in Asia is expected to gradually expand, reflecting evolving consumer preferences.
- A trader in Indonesia observed that Sumatra beans are being offered at a lower discount this week, from a $70 discount last week to a $20 discount, indicating a potential improvement in the sports of coffee.
- As the new harvest season approaches in both Vietnam and Indonesia, traders are closely watching the sports scene for any signs of increased supply, which could impact the trading prices of coffee in the Asian markets.
