HANOI: Trade in Vietnam’s coffee market ground to a halt due to a prolonged lack of robusta beans, while prices in Indonesia rose this week as supplies were limited and London terminal prices were down, traders said on Thursday. Farmers in the central highlands, Vietnam’s largest coffee-growing area, sold beans at 65,000 dong to 67,000 dong ($2.76 to $2.85) per kg, up from last week’s 64,200 dong to 64,900 dong range.
September robusta coffee settled down $44 at $2,726, as of Wednesday’s close. “The prices were down a little bit on Thursday following the lower price in London but remained high,” said a trader based in the coffee belt, adding activities were tepid at the moment.
Traders in Vietnam offered 5% black and broken-grade 2 robusta at a $125 to $170 premium range per metric ton to the September contract, compared with the $120 to $140 premium range last week. While the Indonesian Sumatra robusta coffee bean was offered at $350 premium per metric ton to the September contract this week, up from last week’s $300 premium. “The increased price was because of limited stocks,” said a trader based in the region. “Very few coffee beans are entering Bandar Lampung.”
Another trader said the premium for July and August contract increased by $10 to $375 per tonne. “Coffee price is up to compensate for the fall in London terminal,” the second trader said.
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