* Vietnam's robusta at $50-$75/T discount to London March
* Trade thin on low prices, weak demand
* Indonesia premium rises further to $130/T to Jan contract
By Mi Nguyen
Dec 14 (Reuters) - Vietnam's coffee supply was steady as
good weather supported harvesting but trading was thin, while
Indonesian markets were also subdued due to low stocks, traders
said on Thursday.
Farmers in Vietnam's main coffee-growing province Daklak
sold coffee beans <COFVN-DAK> at 36,000-37,000 dong
($1.58-$1.63) per kg, lower than last week's range of
37,300-37,600 dong, and tracking a decline in London prices,
The London ICE March futures contract fell as low as
$1,686 a tonne on Tuesday, the weakest for the third position
since June 2016.
Traders said 5 percent black and broken grade 2 robusta
<COFVN-G25-SAI> was quoted at a discount of $50-$75 per tonne to
the ICE March futures contract, compared to a discount
of $65-$75 per tonne a week earlier.
Weather is supporting the current harvest in Vietnam's
coffee belt region of Central Highlands, ensuring supply, but
falling prices discouraged farmers and exporters from selling
too many beans, while buyers were also not keen, traders said.
Earlier this month, the United States Department of
Agriculture revised up its forecast for Vietnam's 2017/2018
coffee crop output, including a small amount of arabica, to 29.9
million bags from a previous estimate of 28.6 million bags.
The USDA expects Vietnam's robusta output to reach 28.6
million bags for the 2017/2018 crop and exports to hit 25.5
million bags, both were adjusted higher from previous estimates.
Vietnam's coffee exports in November was revised up from a
previous government estimate to 100,000 tonnes, or 1.67 million
60-kg bags, customs data showed.
Rabobank expects Vietnam's production in 2018/2019 to climb
to 29.4 million bags, from 28.7 million bags in 2017/2018, while
CoffeeNetwork sees a global coffee surplus of 3.7 million bags
in 2018/2019, up from an anticipated 0.9 million in the prior
In Indonesia, the grade 4 defect 80 robusta <COFID-G4-USD>
was set with a $130 a tonne premium to the January contract
, compared to a $110-$120 premium last week, a
Lampung-based trader said.
Traders are only fulfilling previous contracts, the trader
said, adding he expects activity to remain thin through the new
year holidays as traders await the harvest season.
($1 = 22,714 dong)
(Reporting by Mi Nguyen; Additional reporting by Mas Alina
Arifin in Bandar Lampung; Writing by Mai Nguyen, editing by
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