Vietnam coffee premiums jump

Robusta sellers in top producer Vietnam jacked up premiums to offset declines in London futures, while beans from the new harvest in Indonesia began entering the physical market and were snapped up by roasters, dealers said on Friday. New-crop beans from second-largest producer Indonesia were sold at premiums of up to $100 to London futures. The beans are either priced against London's May or July contracts, depending on the period of delivery.
Although moisture content was high at 25 percent from a normal 13 percent due to persistent rains, Indonesian beans fetched hefty premiums, compared with Vietnamese robustas that were offered at $40 above London futures from as little as $10 two weeks ago. Premiums for robusta grade 2, 5 percent black and broken robustas were last quoted at $10 to $20 above London's March contract in mid-January before the local markets were shut for Tet, Vietnam's biggest festival to mark the Lunar New Year. Vietnam plans to export 1.2 million tonnes, or 20 million bags, of coffee this year, down 4 percent from the amount shipped in 2011.