Asia Coffee-Vietnam trade muted on tight supply; prices fall in Indonesia
Asia Coffee-Vietnam trade muted on tight supply; prices fall in Indonesia
Trade in Vietnam's coffee market was hit by a lack of beans at the end of the crop season, while prices dipped in Indonesia on rising supplies and low demand, traders said on Thursday.
Farmers in the Central Highlands, Vietnam's largest coffee-growing area, sold coffee COFVN-DAK at VND40,300-41,000 ($1.77-$1.79) per kg, little changed from last week's VND40,500-41,500 range.
"Buyers are turning to rival Brazil and Indonesia for beans as stocks are almost empty here," said a trader based in Dak Lak province.
"The scarcity is the reason that is keeping prices from falling."
The London ICE May contract LRCc2 settled up $4 at $2,092 per tonne on Wednesday.
Traders in Vietnam offered 5% black and broken-grade 2 robusta COFVN-G25-SAI at a discount of $220 per tonne, compared with $250-$260 a week ago.
In Indonesia's Lampung province, Sumatran robusta beans prices fell as new supplies came in while demand was tepid this week, traders said.
The beans were offered at a $170 discount to May and June contracts, down from last week's $150 discount to the same contracts, one trader said.
Another trader based in the Lampung province offered a $220 discount to July contract, down from a $200 discount last week.
"There aren't many buyers this week, while more new beans are arriving from the mini harvest. It seems some exporters are also trying to sell off their old stock first," one of the traders said.
"Many farmers just want to sell their beans quickly cause they need money for the Eid al-Fitr festivities," a Lampung-based trader said, referring to the holiday in May.
