HANOI: Trading activity in Vietnam remained subdued as traders awaited the bulk arrival of new beans from the ongoing harvest, expected from mid-November, while concerns persisted over rainfall potentially disrupting the peak harvest, traders said on Thursday.
In the Central Highlands, Vietnam’s largest coffee-growing region, farmers sold beans at 115,500 dong to 116,500 dong (USD4.38 to USD4.42), slightly lower than last week’s 117,000 dong to 118,500 dong. Robusta coffee for January delivery settled up USD145, or 3percent, at USD4,610 a metric ton on Wednesday.
“The higher London price was due to fresh concerns over rains in Vietnam,” one trader said. “It is currently gloomy in the coffee-growing area due to scattered rains, which may slow the cherry-picking process and hurt next year’s crop.” Traders offered 5percent black and broken-grade 2 robusta at a discount of USD150 to USD200 per ton to the January LIFFE contract, compared with a USD120-USD150 discount a week earlier.
Another trader said it was still too early to assess the quality of beans as arrivals are still limited. “If it doesn’t rain, beans should start coming in bulk in two weeks,” the trader said.
In Indonesia, Sumatra robusta coffee beans were offered at an USD80 discount to the November and December contracts, narrowing from the USD120 discount last week due to lower supplies of beans, a trader said. Another trader quoted a USD70 discount to the January contract, compared with the USD100 discount last week.
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