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Trade slows in Vietnam, supplies build up in Indonesia

Published: 05 Jun. 2025, 18:16

Arabica coffee cherries are seen on tree at a plantation near Pangalengan in West Java, Indonesia, on May 9, 2018. [REUTERS/YONHAP]

Coffee trading was sluggish in Vietnam this week, with domestic prices falling further following global cues and rising supplies from other robusta producers, while prices flipped to a premium in Indonesia amid the ongoing harvest.

Farmers in the Central Highlands, Vietnam's largest coffee-growing region, sold beans at 113,500 to 114,000 dong ($4.35 to $4.37) per kilogram, lower than the 121,700-122,300 dong range a week ago.

"Activities are not very upbeat," said a trader based in the coffee belt.

"New supplies from Indonesia, Brazil and now Uganda are coming. A bean shortage is not really an issue at the moment."

Traders expect the prices to fall further in the coming weeks.

Cup of coffee [GETTY IMAGE]

The robusta harvest in Brazil is progressing well, with the weather generally favorable and a large crop widely anticipated.

Robusta coffee on the London International Financial Futures and Options Exchange (LIFFE) settled up $8, or 0.2 percent, at $4,345 a ton on Wednesday after hitting the lowest level in nine-and-a-half months the day before, London Stock Exchange Group data showed.

Traders offered five percent black and broken-grade 2 robusta in the range of $40-$80 per-ton premium to the September LIFFE contract.

Indonesian Sumatra robusta coffee beans were offered at an $80 premium this week to the July-August contract, one trader said, adding that "beans have been harvested in several areas".

Another trader quoted an $80 premium to the September contract, compared with a $30 discount two weeks ago to the July contract.

Reuters