Coffee trading in Vietnam resumed on a sluggish note on Thursday after the government eased lockdown restrictions, while stocks in Indonesia remained limited, traders said.
Farmers in the Central Highlands, Vietnam's largest coffee-growing area, sold coffee at 29,500 dong ($1.26) per kg, lower than the 31,200-31,500 dong range before the lockdown.
"Although the government has eased restrictions, trading activities remain sluggish on very low prices," said a trader based in the Central Highlands.
"Farmers are not willing to sell beans at low prices while demands from exporters are not as high as before the outbreak," he added.
July robusta coffee settled up $7, or 0.71%, at $1,128 per tonne on Wednesday.
Traders said coffee farmers were struggling to secure sufficient amount of water for their trees as it had not rained since December.
"If this situation persists, the lack of water may result in a poor harvest later this year with smaller-sized beans," another trader based in the region said.
Traders in Vietnam offered 5% black and broken grade 2 robusta at $150 premium per tonne to the July contract on Thursday. The premiums were $120-$150 per tonne to the May contract three weeks ago, before the lockdown was imposed.
In Indonesia's Lampung province, Sumatran robusta beans were offered with $300-$310 premium to July contracts, traders said.
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