HANOI/BANDAR LAMPUNG Vietnam's domestic coffee prices edged down on Thursday on global cue, while supplies from an ongoing harvest in Indonesia are pulling down its prices.
Farmers in the Central Highlands, Vietnam's largest coffee-growing area, sold coffee at 33,500-34,000 dong ($1.45-$1.47) per kg on Thursday, down from 34,000-34,500 dong a week earlier. November robusta coffee settled down $23, or 1.6%, on Wednesday at $1,440 a tonne.
"Trading activity continued to be quiet this week on scarce supplies," a trader based in the Central Highlands province of Dak Lak. Another trader in the province said the supply issue should prevent further declines.
"The scarcity will keep domestic prices from falling further until the new harvest begins in October," the trader said.
Traders in Vietnam offered 5% black and broken grade 2 robusta at a premium of $90-$100 per tonne to the November contract, compared with the $80 premiums last week. Coffee shipments from Vietnam in the first eight months of this year likely have fallen 1.3% from a year earlier to 1.16 million tonnes, or 19.3 million 60-kg bags, government data released at the weekend showed. Meanwhile, in Indonesia, new supplies from an ongoing harvest are threatening to push prices down. One trader quoted $20-$50 premium to the November contract, down from $140 premium last week. Another quoted $200 premium for the November through March contracts, unchanged from last week.
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