HANOI/BANDAR LAMPUNG, (Indonesia): Trading activities remained dull in Vietnam due to a lack of beans as farmers refrained from releasing remaining stockpiles, while prices rose in Indonesia as unfavourable weather hit mini harvest supplies, traders said on Thursday. Farmers in the central highlands, Vietnam’s largest coffee-growing area, sold beans at 47,400 dong to 48,500 dong (2.00 to $2.05) per kg, compared with the 46,700 dong to 48,800 dong range a week ago.
“Output this year is lower. Farmers have already sold most of their stockpiles,” said a trader based in the coffee belt.
“They are reluctant to sell the rest of their beans and cashing in from pepper instead.” Another trader based in the same region said many coffee growers were switching to durian trees as those trees were reported to be more profitable although it takes the durian at least 5 years to bear fruit.
“Coffee growing area may reduce as a result of that,” the second trader said. “But that does not necessarily mean the output will be lower. With new variety and advanced irrigation system, if weather condition allows, the output will not be impacted.”
Traders in Vietnam offered 5% black and broken-grade 2 robusta at a discount range of $30-$40 per tonne to the May contract.
Vietnam’s coffee exports in February stood at 200,056 tonnes, up 40.3% from the month before, government customs data showed.
Meanwhile, Indonesia’s Lampung Sumatran robusta coffee bean prices rose this week as heavy rainfall in the reason affected mini harvest output.
“Heavy rains have caused many coffee cherries to fall off,” one trader said, adding not many beans produced in this mini harvest.
Sumatran robusta beans were offered at $70 premium to the May contract this week, up from last week’s $50 premium, the trader said. Another trader offered $100 premium to the May and June contract.
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