Local Market In-Brief
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- With a recent rise in London coffee futures, local prices in Vietnam have risen once more, crossing the crucial threshold of 110,000 VND/kg, while differentials continue to ease. Exporters are now bidding for Grade 2, 5%bb for prompt delivery in November at 112,000 VND/kg, translating to around H+20 on an FOB basis. December delivery offers are slightly lower, standing at 111,000 VND/kg, equivalent to H-20 FOB.
- Current FOB offers for Grade 2, 5% black beans have adjusted downward to levels between H and H+50, reflecting limited demand in the market. Local exporters report subdued interest from buyers and note that their sales volume so far is only around 50% of last year’s crop levels.
- Vietnam’s coffee exports in October 2024, particularly of green Robusta beans, reached multi-year lows due to a mix of contributing factors. First, record-low carry-over stocks significantly reduced available export volume. Second, the 2024/25 harvest has been delayed, slowing the flow of new crop coffee to market. Finally, lowerthan-usual demand for Q4 has compounded these challenges, leading to the weakest October export figures seen in years. Please find enclosed our Monthly Exports Statistics report for details.
