Indonesia coffee trading this week has been increasing and is expected to be even more robust next month when its mini harvest season peaks, a trader said.

The grade 4 defect 80 robusta in Lampung province, Indonesia's main coffee growing region, was steady at a $140 a tonne premium to London's May contract, the trader said.

 

"The volume will be better than last year, but our concern now is whether there's still a lot of rain. Too much rain will disturb the quality," said Moelyono Susilo, a trader at PT Taman Delta Indonesia.

Susilo expects Indonesia's 2018 total coffee output to increase to around 11 to 11.5 million 60-kg bags, from 9.5 million bags in 2017.

In rival Vietnam, the world's top robusta producer, farmers quoted beans at 37,500 dong ($1.65) a kilogram in Dak Lak province, the country's main coffee growing region, compared to 37,400-37,700 dong a week earlier, traders said.

Vietnamese traders quoted the 5 percent black and broken grade 2 robusta at a discount of $50-$60 per tonne to the ICE May futures contract, stretching slightly from $40-$50 last week.

But Vietnamese traders said the market has been slow as buyers eye harvests in Indonesia and Brazil, the world's top coffee producer.

 

Copyright Reuters, 2018