HANOI/BANDAR LAMPUNG, Indonesia -- Vietnam coffee export premiums tightened amid slow trading ahead of new harvest season, while stocks fell, and growers and middlemen were reluctant to sell in Indonesia, traders said on Thursday.
Farmers in the Central Highlands sold coffee COFVN-DAK at VND34,000 ($1.47) per kg, compared with the VND33,800-34,200 range last week.
“Storm Vamco, which made landfall last week, did not trigger as much rain as forecast but still hammered bean picking process,” said a trader based in the coffee belt.
“Domestic prices remain high on tight supply at the beginning of the harvest.”
Another trader based in the region said new beans had started to come but still very limited.
“This crop’s beans are smaller than those of the previous one due to adverse weather,” the trader said.
January robusta coffee settled down $14, or 1%, at $1,402 per metric ton on Wednesday.
Traders in Vietnam offered 5% black and broken grade 2 robusta COFVN-G25-SAI at premiums of $100-$110 per metric ton to the January contract, tightening from last week's $120-$140 premium range.
In Indonesia, where the main coffee harvest has ended, robusta beans were offered with $250 premium to the December contract, compared with last week’s $250 premium to the November contract.
“The volume of incoming beans continue to drop. Other than because harvest has ended, a lot of supply are being kept by farmers or middlemen too,” the trader said.
Another trader in Lampung province on Indonesia’s Sumatra island said robusta beans offered with $150 premium to the January contract, falling from $170 premium per metric ton last week, as price in London terminal rose.
“Demand and supply both declined as harvest season has ended,” the trader said. ($1 = VND23,174)