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HANOI: Coffee prices in Vietnam edged up this week on higher demand and tighter supplies as farmers ran down their inventories, while trading activities were muted in Indonesia due to Eid Al-Fitr holiday, traders said on Thursday.

Farmers in the Central Highlands, Vietnam’s largest coffee-growing area, sold coffee at 41,000-42,500 dong($1.79-$1.85) per kg, up from 39,000-40,000 dong range last week. “Farmers have sold most of their stocks. Limited supplies and picked-up demand pushed prices higher,” said a trader based in the coffee belt.

“Domestic prices also inched higher following an increase in global prices.” Another trader based in the same region said the current downpour in the Central Highlands actually supported coffee trees.

The London ICE July contract settled up $22 at $2,137 per tonne on Wednesday.

Traders in Vietnam offered 5% black and broken-grade 2 robusta at a discount of $200-$220 per tonne, unchanged from a week ago.

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