Asia coffee: Vietnam trade muted on low supplies

HANOI/BANDAR LAMPUNG, (Indonesia): Trading activities remained sluggish in Vietnam on thin supplies with domestic prices stable at around 120,000 dong per kg, while premiums in Indonesia remained high, traders said on Thursday.

Farmers in the Central Highlands, Vietnam’s largest coffee-growing area, were selling beans for 119,000-120,200 dong ($4.67-$4.72) per kg, little changed from a week ago.

“Domestic coffee trading is pretty quiet as farmers have run out of beans while some firms are not willing to import (beans) at too high prices,” said Nguyen Ngoc Quynh, deputy chief of Mercantile Exchange of Vietnam (MXV).

“Coffee prices are likely to increase in the last days of June and early July.” A trader based in the coffee belt said recent rainfalls in the area benefited coffee trees and have boosted the size of cherries.