Trading activity was subdued this week as traders settled in for year-end holidays and farmers were reluctant to release beans on low prices, while the Indonesian market was closed for the holidays, traders said on Thursday.
Farmers in the Central Highlands, Vietnam's largest coffee-growing area, sold coffee at 33,600 dong ($1.45), compared to a range of 33,500-34,000 dong last week.
"Many foreign importers and banks are on holiday, so trade is dull. Locally the market is also subdued," said a trader based in Ho Chi Minh City.
"Prices now are not attractive enough for farmers to release the beans," he added.
Traders said the weather had been supportive for picking and drying beans so far but worried that an approaching tropical storm, expected to hit the region in the next few days, would harm the crops. "If the storm triggers heavy rains, both supply and quality of the coffee beans will be hurt," a trader based in Central Highlands, Vietnam's main coffee belt said, adding that humidity after the rains would also impede the drying process.
Traders in Vietnam offered 5% black and broken grade 2 robusta at a $70-$80 premium per tonne to the March contract on Thursday, up from $50 premium last week.
Comments
Comments are closed for this article.