Vietnam’s Coffee Belt Reports weak demand

Vietnam’s Coffee Belt Reports Weak Demand

March 27 - 2021Coffee Geography Magazine

Vietnam's coffee belt reported weak demand, while the Indonesian premiums narrowed as farmers are expected to sell more beans ahead of Ramadan, traders said on Thursday. Vietnam is the second largest producer in the world after Brazil, with Robusta coffee accounting to 97 per cent of Vietnam's total output.


Farmers in the Central Highlands, Vietnam's coffee-growing capital, sold coffee at 32,800 dong-33,500 dong per kg($1.42-$1.45), up from last week's 32,100 dong-32,800 dong.

The weak demand is exacerbated by the Suez Canal incident which hinders Asian beans from reaching the E.U. market.

Vietnam map

"Farmers are holding back from selling coffee beans due to unattractive prices," said a trader based in the coffee belt.

May robusta coffee settled up $6, or %0.04, at $1,412 on Thursday.

Traders in Vietnam offered 5% black and broken-grade 2 robusta at premiums of $55-$60 to the May contract, compared with last week's 50-$60 premiums.


In Indonesia's Lampung province, robusta beans premiums narrowed this week, traders in the region said, as they expected farmers to start selling their bean stocks to cash in for Ramadan needs and ahead of the upcoming harvest.


One trader offered $200-$220 premiums to the May contract this week, down from $230-$240 premiums to the April contract last week.


Another trader offered $230 premium to the May contract, down from $250 last week.


"The farmers will start selling a lot of the beans in April or during the Ramadan month because there will be a lot of spendings for that month," one of the traders said, adding the main harvest would start in May.


The Islamic fasting month, Ramadan, will start around mid-April and Muslim households in Indonesia typically increase their spending during the festivities of the month and ahead of the holidays at the end of Ramadan.

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