HANOI: Coffee trading in Vietnam remained sluggish this week due to limited supplies, as farmers were unwilling to release beans in bulk, while Indonesian premiums were flat, traders said on Thursday.
In the Central Highlands, farmers sold beans at 98,300 to 98,800 dong (USD3.74 to USD3.76) per kg, slightly higher than last week’s 97,500 to 98,200 dong. Robusta coffee for March delivery settled up USD2 at USD3,955, as of Wednesday’s close.
“The pace of contract finalisation has been slow as farmers and exporters struggle to agree on prices,” a trader in the coffee belt said.
“While exporters are pushing for lower prices during the peak harvest, farmers are holding onto their beans, hoping for better rates and clearer signals from the international market,” the trader added. Traders offered 5percent black and broken-grade 2 robusta at a discount range of USD135 to USD165 per ton to the March LIFFE contract, compared with last week’s range.
In Indonesia, Sumatra robusta coffee beans for the February contract were offered at a USD210 premium this week, slightly lower than a USD215 premium a week ago, a trader said.
Another trader said the premium was at USD200 to the March contract, unchanged from last week. Farmers said the weather in the coffee-growing area was not ideal for the tree.
“For the main harvest in August, coffee harvest could be reduced by around 30 percent as many coffee cherries fell due to the rain,” said Bukhori, a coffee farmer in West Lampung.
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