Asia Coffee-Vietnam, Indonesia premiums widen on subdued London prices
Asia Coffee-Vietnam, Indonesia premiums widen on subdued London prices
Trading activities remained tepid in Vietnam as traders await new crop season, while premiums in both markets widened this week to compensate for subdued London prices, traders said on Thursday.
Farmers in the Central Highlands, Vietnam's largest coffee-growing area, sold coffee COFVN-DAK at 33,500 dong ($1.45) per kg, lower than the 34,200-34,500 dong range last week.
“Trade has almost come to a halt ahead of a major harvest (season) beginning next month. Virtually no new deals have been clinched,” a trader based in the coffee belt said.
“Prices fell this week tracking lower London prices.”
Another trader also based in the region said the scarcity of beans at the end of the harvest season would keep domestic prices from falling further until next harvest.
In London, November robusta coffee settled at $1,349 per tonne on Wednesday.
Traders in Vietnam offered 5% black and broken grade 2 robusta COFVN-G25-SAIat a premium of $110 per tonne to the November contract, up from the $70-80 premiums range from a week ago.
In Indonesia’s Lampung province, Sumatran robusta beans premiums increased to $190-$200 from $160 last week for November contract, a trader said.
While another trader said premium to the November contract rose to $100 from $50 last week.
“The hike in premiums is to compensate for the drop in global prices. In local market, exporters still bought coffee with the same price as last week,” a trader said, adding that supply and trade volume were still high.
