The subdued sentiment in Asian coffee markets extended into this week on low stocks in Vietnam and Indonesia while importers refused Vietnamese offers citing high prices, traders said on Thursday. In Vietnam, exporters offered the 5 percent black and broken grade 2 robusta variety at a discount of $40 to par to the London ICE January contract, tightening from last week's $70-$80 discounts, traders said.
Traders said importers turned down offers by Vietnamese exporters as the prices quoted were too high, crimping trade in the world's biggest robusta producer. Vietnamese farmers quoted 43,400-44,000 dong ($1.91-$1.94) per kg, slightly higher than 42,200-43,000 dong from a week earlier, tracking a slight gain in London prices, traders said. The London January futures contract has risen as much as 4.84 percent since September 6 when it hit its lowest in more than a month, Thomson Reuters data showed.
Tropical Storm Doksuri, which swept through the Philippines, is expected to intensify to a strong typhoon and hit central Vietnam later this week. However, traders expect the storm to bring good rains to the Central Highlands, Vietnam's major coffee growing area, instead of destroying the crop. In rival Indonesia, traders quoted the grade 4 defect 80 robusta beans at between par and a $10 premium to the London November contract, tightening from premiums of $70-$80 a week ago.
"Buyers also know there were no stocks," a Bandar Lampung-based trader told Reuters, noting that the market was very quiet. "At most there are 20 truck-loads of stocks," the trader said, referring to stocks at his company and adding that each truckload carried around 10 tonnes of beans and that this should be enough to fulfil export contracts.
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