Indonesian coffee premiums slip; Vietnam's prices fall

Indonesian coffee premiums slipped on solid supply during a mini harvest, while domestic prices in Vietnam fell, tracking London cues, traders said on Thursday. Premiums of Indonesia's grade 4 defect 80 robusta retreated to $110-$120 a tonne to London's July contract, compared with $120-$150 a week earlier, traders said. Farmers are still supplying beans to the market, the traders said, adding domestic instant coffee makers were dominating the trade and offered higher prices than foreign buyers.
In rival Vietnam, the world's second top coffee supplier after Brazil, weak demand from importers and drop in London prices dragged domestic prices to 36,500-36,800 dong ($1.60-$1.62) per kg from 37,000-37,300 dong last week, traders said. London's July contract on Wednesday fell 1.2 percent to $1,760 a tonne, Thomson Reuters data showed. Vietnamese traders quoted discounts for the 5 percent black and broken grade 2 robusta at $60-$90 to the July contract, same as last week.