Vietnam's coffee market was quiet this week as low prices discouraged sellers from offloading stocks while buyers were still well-supplied, traders said on Tuesday. Selling at a slow pace could help Vietnam, the world's top robusta producer, maintain sufficient stocks for loading until early October before fresh beans from the next 2014/2015 crop year start rolling in to the market.
"The market is really dull, buyers have covered as much as they needed, not to mention the rainy season that slows shipping," said a Ho Chi Minh City-based trader.
Seasonal rain is due to end in early October, giving way to the harvest in the Central Highlands coffee belt.
Supply was also weak as farmers held back beans on expectations of higher prices, traders said.
Farmers could sell beans more quickly if domestic prices rise beyond 41,000 dong ($1.93) per kg, a Vietnamese coffee exporter said.
On Tuesday, the bitter beans used for making instant coffee stood at 39,900-40,200 dong a kg in Daklak, the country's largest growing province, changing little from 39,800-40,000 dong a week ago.
Vietnam exported an estimated 85,000 tonnes (1.42 million bags) of coffee in July, 6.3 percent lower than a year ago, the government has said, below market expectations.
Vietnamese beans grade 2, 5 percent black and broken were offered at discounts of $40-$50 a tonne to London's November contract, which closed up 0.5 percent at $2,024 a tonne on Monday.
Traders said the market has stopped quoting differentials to the front-month September contract.