Vietnam's coffee market was subdued on Thursday, although prices rebounded later in the session and pulled in buyers, traders said, while Indonesia's coffee exports declined for a fifth straight month. Exports from Lampung, Indonesia's largest coffee-growing region, plunged 71 percent from a year earlier in January, while the country's 2018 coffee bean output was forecast to drop a fifth.
Robusta coffee was traded in Lampung with a premium of $160-$170 to the March contract, a local trader said. Sunyoto, a coffee farmer in Lampung, said coffee cherries have been spotted in the region's western areas and a mini harvest is expected around April. Vietnam farmers were reluctant to sell beans due to the recent slump in robusta prices, which prompted coffee roasters to step up purchases, traders said.
The London ICE March robusta coffee settled at $1,762 per tonne on Wednesday, up from $1,728 on Tuesday. Farmers at Daklak, the main coffee-growing province in Vietnam, quoted beans at 37,500-37,600 dong per kg, slightly above last week's range of 37,200 dong to 37,400 dong, tracking London prices. Traders quoted the 5 percent black and broken grade 2 robusta at a discount of $40-$100 per tonne to the ICE May futures contract, compared with a discount of $50-$100 per tonne a week ago.
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