MILAN – Coffee trading in Vietnam is virtually paralysed by a two-week ban on all but essential activities, which started last Wednesday. Meanwhile, traders in Indonesia are awaiting new beans coming in May. Some traders said they couldn’t fulfil their signed contracts because of supply disruption.
“Not just Vietnam, the pandemic has prompted governments around the world to impose severe curbs on movement in a bid to stem the spread of the virus,” said a trader based in the Central Highlands, Vietnam’s coffee belt.
“Basically, the virus has disrupted everything in everywhere.”
“Roasters and traders are already stocked up as they anticipated supply disruption because of the virus. But farmers refused to release beans at low prices in March so there are still some orders I can’t fulfil,” another trader based in the same region said.
“Hopefully activities will resume as soon as Indonesia is about to release fresh beans next month.”
A trader in Indonesia’s Lampung province in Sumatra said robusta beans were being offered with $250 premium to the July contract this week, compared to a $200-$250 premium last week.
Other traders said the premium remained unchanged at $300-$350 for contracts from May through July.