HANOI/BANDAR LAMPUNG, Indonesia -- Asia’s coffee export markets were dull this week with few deals clinched ahead of the Christmas and New Year holidays, while prices in Vietnam edged up due to unfavourable weather, traders said on Thursday.
Farmers in the Central Highlands, Vietnam's coffee-growing capital, sold coffee COFVN-DAK at VND34,000 ($1.47) per kg, slightly higher than the previous week's VND33,000 to VND33,400 range.
“The weather this week is not so favourable for the harvest. Cloudy weather and humidity impeded the drying process,” said a trader based in Vietnam’s coffee belt region of Central Highlands.
“Bean supplies are somewhat slow. At the same time, farmers held on to inventories on fears supply would fall short and as price now is only enough to cover the cost of production.”
Another trader based in Ho Chi Minh City said trade had entered a historically dull time of the year as many foreign importers and banks were on holiday.
“Local market is also not very upbeat. Only those who expect prices to pick up are buying to reserve stocks in advance at the moment,” he said.
March robusta coffee settled down $1, or 0.07%, at $1,378 per metric ton on Wednesday.
Traders in Vietnam offered 5% black and broken grade 2 robusta COFVN-G25-SAI at a premium of $100 to the March contract on Thursday, compared with last week's $95-$110 premiums.
Robusta beans in Indonesia’s Lampung province were offered at a $230 premium to the March contract and a $270 premium to the April contract this week, both unchanged from a week earlier.
“Beans supply is limited after harvest ended, but some farmers were seen selling their stocks this week, although the volume was very little,” one of the traders said.
($1 = VND23,131)