Asia coffee: Sluggish trade in Vietnam, premiums rise in Indonesia

HANOI: Activity in Vietnam’s coffee market was sluggish at the end of the harvest season as limited supplies were matched by weak demand, while robusta premiums in Indonesia jumped this week on tighter supplies and a potentially smaller harvest.

Farmers in the Central Highlands, Vietnam’s coffee belt, sold beans at 96,400 dong to 97,000 dong (USD3.66 to USD3.69) per kg, down from last week’s 97,200 dong to 98,000 dong range.

September robusta coffee futures settled down USD22, or 1percent, at USD3,796 per metric ton on Wednesday.

“Trading activities are tepid now. Bean supplies are very scarce at the end of the season, while demand is also thin,” said a trader based in the coffee belt. Traders offered 5percent black and broken-grade 2 robusta at a discount of USD60 to USD80 per ton to the September LIFFE contract.

In Indonesia, Sumatra robusta coffee beans were offered at a USD160 premium to the November contract this week, a trader said, up from last week’s USD80 premium.