Vietnam coffee prices escalate based on global cues and enhanced demand for Indonesian beans.
In the global coffee market, prices have been on the rise, with Robusta coffee reaching its highest level since late June at $3,799 per metric ton. This surge is being driven by strong demand and limited supply, particularly in Indonesia and Vietnam, the world's leading Robusta coffee producers.
Last week, the premium for Sumatra robusta coffee beans was $150 to the September/October contract, and this trend continues. Traders in Vietnam are offering 5% black and broken-grade 2 robusta at a premium of $400-$500 per ton to the November LIFFE contract, with another trader quoting a $150 premium, up from the $100 premium last week.
The coffee harvest in Lampung, Indonesia, is expected to end in late August or early September, with about 80% of the crop already gathered. In Vietnam's Central Highlands, the largest coffee-growing region, farmers are selling beans at 107,000-110,000 dong per kg, a price that is 700-3000 dong higher than a week ago.
Despite the high prices and global uncertainties, demand for coffee remains strong in Indonesia, where stockpiles are depleting. However, many warehouses in both countries are not currently buying coffee, waiting for more supply in October-November.
The lack of clear market signals suggests that traders are cautious and strategic in their buying decisions. Foreign demand for coffee remains thin due to the high prices and global uncertainties.
Looking at historical data, Vietnam has been a major coffee exporter, particularly robusta, with export volumes growing significantly in recent years. Indonesia’s coffee exports have also expanded, with harvests running into the Oct-Nov period. While exact figures for Oct-Nov 2021 are not provided, seasonal patterns suggest this period overlaps with harvests in these countries where supply typically increases.
Global coffee demand has been strong, supported by favorable prices and strong speculative activity. Vietnam’s rising export revenues indicate robust demand globally for their coffee products. However, due to the constraints of the current search results, specific supply and demand details strictly for October-November 2021 are not available.
In conclusion, while there is strong evidence of increasing exports and demand for coffee from Indonesia and Vietnam in recent years, specific supply and demand details strictly for October-November 2021 are not available in the current search results. For precise historical data from 2021, consulting specialized export/import databases or reports from bodies like the International Coffee Organization (ICO) for that year would be necessary.
The sports of watching the coffee market have become increasingly thrilling, as evidueced by the strategic trading decisions made by traders in light of the current indices and uncertainties. In Vietnam, not just coffee beans, but even the trading strategies seem to be on par with some high-stakes sports moves, as traders vie for the best prices and positions.
