Higher demand from global importers and lack of domestic supply pushed up prices in Vietnam, while Indonesian coffee surged amid lean trade as supply in the area continued to be thin, traders said on Thursday. Coffee prices in Daklak, Vietnam's largest growing province, rose to 46,000 dong-46,500 dong ($2.02-$2.04) per kg from 45,000 dong-47,000 dong on Tuesday, as traders push prices to match with farmers' expectation, but very few trade was made.
"Selling by farmers dropped as London prices fell so quickly and as their demand for cash also decreased after the Lunar New Year holiday," said Phan Hung Anh, deputy director of Daklak-based Anh Minh Co. "I think if price rebounds to 48,000 dong, farmers might release more beans," he said. Discounts on 5-pct black and broken grade 2 robusta in Vietnam tightened to $50-$70 a tonne below the London's ICE May contract, from a discount of $65-$70 quoted on Tuesday, as a few beans are available.
Meanwhile, in Lampung, Indonesia's main coffee-growing area, there was no new trade as there was no supply. "Today's trading is so quiet, we are taking naps," an exporter said. Quotes for the robusta grade 4, 80 defects, reversed to a premium of $5-$20 a tonne to the March and May contract, compared with discounts of $5-$20 a week earlier, for a very thin trade on limited supply, exporter said.
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