Vietnam Coffee Market Remains Sluggish Amid Price Expectations

Farmers Hold Back Sales Anticipating Higher Prices

The coffee trade in Vietnam continues to experience sluggish activity as farmers choose to hold back their sales in anticipation of higher prices. Despite this, there are signs that demand is beginning to strengthen as exporters resume their activities after a period of inactivity and work to fulfill their shipping obligations. However, the supply of coffee remains limited due to farmers' reluctance to sell at current prices.

Price Dynamics and Regional Variations

In the highlands of Central Vietnam, farmers are selling coffee beans at prices ranging from 97,500 to 98,200 VND per kg (approximately USD 3.71 to USD 3.74). This pricing reflects the current market conditions where farmers are not under significant pressure to sell, partly because they are able to generate income from other sources such as durian. As a result, they are holding back their coffee beans and demanding higher prices.

Global Coffee Market Trends

On the global front, Robusta coffee prices for March delivery experienced a decline of USD 68, settling at USD 3,939 at the close of trading on Wednesday. This price movement is indicative of the complex dynamics at play in the global coffee market, where factors such as supply constraints, demand fluctuations, and broader economic conditions all play a role.

Indonesian Coffee Market Developments

In Indonesia, there has been an increase in coffee premiums, suggesting a positive outlook for the local coffee industry. This development could have implications for Indonesian coffee producers and exporters, potentially influencing their pricing strategies and market competitiveness.