Vietnamese coffee prices fell slightly tracking the London market, while trading volumes in Indonesia have started picking up as a mini-harvest is underway. Farmers in Dak Lak province, Vietnam's key coffee-growing area, quoted beans at 37,400-37,700 dong ($1.64-$1.66) a kilogram, down from a range of 37,500-37,800 dong a week earlier, in line with a decline in London prices. Local traders said farmers have sold about 50-60 percent of their stocks, and are showing signs of slowing down their sales as prices fall.
"They are not willing to sell more at the current prices," said a Dak Lak-based trader. "I think they will resume sales when prices are closer to 38,000 dong a kilogram." Traders said exports from Vietnam, the world's largest robusta producer, may decline over the coming weeks on weak demand and low prices. "We are offering a discount of $50 a tonne, but buyers want a bigger discount, of $60-$70 a tonne," the Dak Lak-based trader said.
Vietnamese traders quoted the 5 percent black and broken grade 2 robusta at a discount of $40-$50 per tonne to the ICE May futures contract, from a discount of $60-$110 a week earlier.
In Indonesia, the grade 4 defect 80 robusta in Lampung province was traded at a $140 premium to the May contract, a trader in Lampung, the country's main coffee producing area, said. The premium has stayed at that level for the fourth week, despite volumes picking up as some areas in Lampung have started to produce coffee beans in a mini harvest, the trader said, adding that hundreds of tonnes of beans have been traded this week.
Comments
Comments are closed.