HANOI: Trading activities continued on a sluggish note in Vietnam this week on thin demand, while premiums remained high in Indonesia as buyers were awaiting an upcoming harvest, traders said on Thursday.
Farmers in the Central Highlands, Vietnam’s coffee-growing capital, sold coffee at 31,400-32,700 dong ($1.36-$1.42), compared with last week’s 31,300-32,800 dong.
“The prices were too low for farmers to release rest of their beans, while buyers who want to fulfil their signed contracts tend to turn to Indonesia or Brazil,” said a trader based in the coffee belt.
“Farmers don’t really need cash now, and they have about 20% of stock left and prefer to keep them to be safe.”
Another trader also based in the same region said the weather looked favourable so far this year.
July robusta coffee settled down $8, or 1%, at $1,349 per tonne on Wednesday.
Traders in Vietnam offered 5% black and broken-grade 2 robusta at a premium of $60 to the July contract, unchanged from a week ago.
In Indonesia’s Lampung province, Sumatran robusta beans were offered with $200 premium to the May and June contracts, unchanged from last week, a trader said.
“Prices are not coming down yet despite lower benchmark London prices as exporters are still waiting for harvest in Lampung area,” he said.
Another trader offered $200 premium to the July contract, down from $220 premium a week earlier.
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