HANOI: Coffee trading continued on a sluggish note this week in Vietnam due to a shortage of beans and soft demand as traders awaited the new crop season that officially begins next month, traders said on Thursday.
In the Central Highlands, Vietnam’s largest coffee-growing region, farmers sold beans at 115,000-117,000 dong (USD4.36-USD4.44) per kg, compared with last week’s 114,500-116,800 dong. “Both demand and supply are thin at the moment,” said a trader based in the Central Highlands. “Edging close to the new crop season, traders tend to wait for new beans.”
Another trader said some farmers had started offering beans from the upcoming harvest, however the volume was limited. Robusta coffee settled down USD331, or 7 percent, at USD4,450 a metric ton on Wednesday. In Indonesia, Sumatra robusta coffee beans were offered at USD40-45 discount to the November and December contract, compared to 0 discount last week, a trader said, due to declining prices at the London terminal.
“Coffee price is not stable. Some trading houses have hedged on the terminal, allowing them to sell at lower prices,” the trader said. Another trader quoted a USD50 premium to the November contract, compared with a USD100 discount last week.
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