HANOI: Robusta coffee prices in Vietnam eased this week amid subdued trading activity, even as supplies remained thin, while premiums in Indonesia were mixed, traders said on Thursday.
Farmers in the Central Highlands, Vietnam’s coffee belt, sold beans at 93,000 dong to 93,500 dong (USD3.58 to USD3.60) per kg, down from last week’s 94,000 dong to 95,000 dong range.
“Rains have subsided in coffee-growing areas and are unlikely to harm the crop,” a trader based in the coffee belt said, adding that rainfall at this time is actually beneficial for both the soil and coffee trees.
Another trader said inventory on ICE remained high, putting pressure on robusta prices. November robusta coffee futures settled down USD51 at USD3,430 a metric ton on Wednesday.
Traders offered 5percent black and broken-grade 2 robusta at a premium of USD100 to USD150 per metric ton to the November LIFFE contract. However, they noted that there were almost no new deals being signed.
In Indonesia, the premium on Sumatra robusta coffee beans to October shipments rose to USD230 from USD200 last week, a trader said. Another trader quoted a USD250 premium to the November contract, down from USD300 last week. A coffee farmer in Lampung said the ongoing dry weather was supportive of cherry development.
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