HANOI: Coffee trading in Vietnam slowed this week as the crop season drew to a close, with dwindling stockpiles and subdued demand weighing on activity, while harvesting continued in Indonesia, traders said on Thursday.
Farmers in the Central Highlands, Vietnam’s coffee belt, sold beans at 96,000 dong to 96,500 dong (USD3.65 to USD3.67) per kg, compared with last week’s 96,400 dong to 97,000 dong.
September robusta coffee futures settled down USD110, or 1percent, at USD3,749 per metric ton on Wednesday. “Prices fell today following global cues,” a trader in the coffee belt said. “Most farmers have sold their beans. Only a few who are not under pressure to raise cash for reinvestment in the new crop are still holding stocks.”
Traders said the impact of El Nino has yet to materialise. However, extreme weather between November and March, during the harvest and irrigation period, could threaten next year’s output. Traders offered 5percent black and broken-grade 2 robusta at a discount of USD20 to USD50 per ton to the November LIFFE contract.
In Indonesia, Sumatra robusta coffee beans were offered at a USD150 premium to the November contract, a trader said, down from a USD160 premium a week ago. Another trader quoted a USD110 premium to the September contract, higher than last week’s USD100 premium to the August contract.
Coffee farmers in Lampung said weather conditions had been favourable for coffee cultivation this week, with the harvest still underway.
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