HANOI/BANDAR LAMPUNG, (Indonesia): Coffee trading activities in Vietnam remained tepid at the end of the crop season due to a shortage of beans and high prices, while Indonesian premiums for November deliveries edged down significantly on abundant supplies, traders said on Thursday.
Farmers in the Central Highlands, Vietnam’s largest coffee-growing area, were selling beans for 122,000-123,000 dong ($4.85-$4.89), lower than 123,000-123,500 dong a week ago.
“No one is willing to buy at that high price. Those who are desperate for beans can turn to Indonesia instead,” a trader based in the coffee belt said. “It is 2-3 months until the new harvest, activities will be better by then.”
Robusta coffee for November delivery settled up $96 at $4,286 per metric ton as of Wednesday’s close. “European importers are aware of the scarcity in Vietnam, although their demands have shown signs of recovery, they are not buying from Vietnam. Therefore, export activities will stay this lacklustre until the new harvest,” the Mercantile Exchange of Vietnam said in a note earlier this week.
In Indonesia, Sumatra robusta coffee beans were offered at $320 premium to the September contract.
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