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HANOI/BANDAR LAMPUNG: Vietnam's domestic coffee prices edged slightly lower on Thursday from a week earlier, as supplies were building up from an on ongoing harvest in the country. Farmers in the Central Highlands, the country's coffee growing capital, sold coffee at 33,000-33,500 dong ($1.43-$1.45) per kg, compared with 34,000 dong last week. "Supplies have started to increase as farmers are harvesting their new beans," said a trader based in the region's Dak Lak province.

Traders said farmers had harvested around 10% of the crop, adding that the harvest would peak in two weeks. Output from the 2020-21 harvest would likely fall 10% from the previous harvest of around 27 million 60-kg bags, they added.

Vietnamese traders offered 5% black and broken grade 2 robusta at premiums of $70-$80 per tonne to the March contract. Last week, the premiums were $100-$110 per tonne for January contract. In Indonesia, robusta beans were offered at $150 premium to the January contract, unchanged from last week.

One of the traders in Indonesia said beans stockpile continues to diminish after a harvest completed there, leading to weak trading activity this week, adding that trade is expected to remain muted for the rest of the year.

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