Asia Coffee-Markets quiet ahead of holidays, prices drop in Vietnam

Asia's coffee export markets were quiet with few deals sealed ahead of Christmas and New Year holidays, while prices in Vietnam dropped on low quality of beans, traders said on Thursday. Robusta grade 2, 5 pct black and broken was quoted at discounts of $60-$70 a tonne to the ICE March contract, widening from $50-$60 a tonne a week earlier. Some deals were sealed at $70 a tonne below the London contract.
"Farmers want to sell low quality beans as soon as possible but buyers seem reluctant due to upcoming holidays and as they are afraid of bad grains," said independent analyst Nguyen Quang Binh. Rain has stopped but it is expected to come back and last until the end of this month, said a trader with a European firm in Ho Chi Minh City.
The latest spell of torrential rain has delayed harvesting and hit the quality of beans in Daklak, the country's top growing province, traders said. This has also led to early flowering, which could result in lower output in the next season, they added. The problem with rain affecting harvest and coffee quality has been anticipated. Officials and traders had said in July that rains from a La Nina weather event could hurt coffee quality and shrink supply of exportable beans. In Indonesia, coffee supply stayed low since the harvesting season is over and sellers have closed trading for the year, while demand was normal.