An upcoming mini harvest boosted trading in Indonesia coffee but slowed down demand for the beans in regional rival Vietnam, traders said on Thursday.
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 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.
($1 = 22,794 dong)