HANOI/BANDAR LAMPUNG, Aug 8 (Reuters) - Higher demand from global buyers and lack of domestic supply pushed up prices in Vietnam this week, while supply in Indonesia is expected to dip as the harvest there draws to a close.
Farmers in the Central Highlands, Vietnam’s largest coffee growing area, sold coffee at 35,000 dong ($1.51) per kg COFVN-DAK, slightly up from 34,600 dong a week earlier.
“Prices have bounced back in the past two weeks as demand remains high while stocks at farmers’ warehouses have almost run out,” a trader based in the province of Dak Lak said. “But I don’t see any factors that can push the prices higher.”
During the past two days, heavy rains have hit several parts of the Central Highlands and are expected to continue for the next few days, the National Meteorological and Hydrological Center said on Thursday.
No crop damages have been reported. Traders said up to now, the weather had been favourable for baby cherries to grow well.
The next harvest season in Vietnam will start in October.
Traders in Vietnam offered the 5% black and broken grade 2 robusta COFVN-G25-SAI at a $200 premium per tonne to the September contract, widening from $140 of last week.
The International Coffee Organization on Wednesday raised its forecast for global coffee production in 2018/19 to 168.77 million 60-kg bags from the previously expected of 167.75 million.
Meanwhile, Indonesian robusta beans were offered with $170-$200 premium to November contract, traders in Sumatra’s Lampung province said. That compared to a range of $150-$200 premium to September contract last week.
“New beans supply are starting to wind down since harvest season will end soon,” one trader said. ($1 = 23,220 dong) (Reporting by Phuong Nguyen in HANOI and Mas Alina Arifin in BANDAR LAMPUNG; editing by Uttaresh.V)