HANOI/BANDAR LAMPUNG: Vietnam’s coffee supplies built up this week as farmers started to pick beans but trading remained thin on weak demand, while prices rose in Indonesia on tightening supplies post-harvest, traders said on Thursday.
Farmers in the Central Highlands, Vietnam’s largest coffee-growing area, sold beans at 39,700-41,300 dong ($1.60-$1.66), down from 40,400-41,900 dong range a week ago.
“Lower prices this week were in line with a drop in global prices and due to more supplies,” said a trader based in Central Highlands province of Dak Lak. “Farmers have harvested 15% of their crop but the weather now is a bit gloomy to dry bean under the sun.”
Another trader also based in the same region said demand had yet to pick up as buyers were waiting for more beans to come and watching the market situation. January robusta futures on ICE settled $12, or 1%, lower on Wednesday, at $1,819, the lowest level this year, according to Refinitiv Eikon data.
Traders in Vietnam offered 5% black and broken-grade 2 robusta at a discount range of $60-$70 per tonne to the March contract. Prices of Sumatra robusta beans in Indonesia’s Lampung extended their climbs as supply continued to drop.
A trader in Lampung province offered $40 premium to the January contract, up from last week’s $20 premium to the November contract.
“Trade is getting thin because there were only very small amount of beans arrived in Bandar Lampung this week,” the trader said, referring to the capital city of Lampung province.
Another trader offered $210 premium to the January-February contracts, up from $200 premium quoted for November-December contracts last week.
“The higher premium was to compensate for a drop in the benchmark prices and thin stocks post-harvest,” the second trader said.
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