SINGAPORE: Vietnam coffee prices edged down amid dull trade ahead of the week-long Lunar New Year holiday, while trade has not yet picked up in Indonesia as stocks remain low until at least March, traders said on Thursday.
Farmers in the Central Highlands sold coffee at 38,800 dong to 40,200 dong ($1.71 to $1.78) per kg, little changed from last week’s range of 38,800 dong to 40,700 dong.
“Prices are declining on increasing supplies but tepid demand,” said a trader in the coffee belt, adding that prolonged supply chain disruptions contributed to lacklustre trade. “Farmers are holding on to beans as they are not under pressure to sell for the upcoming long holiday anymore. Some have already shut their shops.”
Markets in Vietnam will close next week for the holiday and traders said export activities would not resume until it ended. Traders in Vietnam offered 5% black and broken grade 2 robusta at discounts of $270 to $280 per tonne to the May contract, versus a range of $250 to $270 a week ago.
March robusta coffee shed $46, or 2%, to stand at $2,191 a tonne on Wednesday. Indonesia’s Sumatran robusta beans were offered at a discount of $120 per tonne to the February contract, one trader said. Another trader offered a discount of $200 a tonne to the March contract, narrowing from last week’s $250.
“There were barely any new bean supplies and only traders with remaining stock could take part in trading this week,” said a regional trader. Traders expect a mini-harvest between March and April. ($1=22,645 dong).
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