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Asia Coffee-Vietnam prices flat; Indonesian premium narrows on strong supplies

By Phuong Nguyen and Mas Alina Arifin

HANOI/BANDAR LAMPUNG, July 18 (Reuters) – Vietnam’s domestic coffee prices were unchanged on Thursday from a week earlier, while Indonesian premium narrowed slightly on abundant supplies.

Farmers in the Central Highlands, Vietnam’s largest coffee growing area, sold coffee <COFVN-DAK> at 34,500-35,000 dong ($1.49-$1.51) per kg, unchanged from last week.

Traders in Vietnam said market activity had been quiet this week on low supplies.

“Domestic supplies have run very low now as farmers have sold most of their output and are reluctant to sell the rest at low prices,” a Ho Chi Minh City-based trader said.

Traders forecast coffee output of Vietnam’s 2019/20 crop year may rise 2%-3%, to around 1.9 million metric tonnes, or 31.67 million 60-kg bags.

“The weather now is in ideal condition with moderate rains for baby cherries to grow well,” said another trader based in the Central Highlands.

Vietnam’s coffee exports in the first half of this year fell 11.5% from a year earlier to around 920,000 tonnes.

Traders in Vietnam offered 5% black and broken grade 2 robusta <COFVN-G25-SAI> grew to $120 per tonne discount to the September contract, compared with a $90 discount a week ago.

Meanwhile, supplies are growing in Indonesia amid a major harvest in Sumatra.

Indonesia’s grade 4 defect 80 robusta beans <COFID-G4-USD> were offered at $150-$180 premium to September contract, compared with a $150-$200 premium last week, traders in Sumatra said. ($1 = 23,210 dong) (Reporting by Phuong Nguyen in Hanoi and Mas Alina Arifin in BANDAR LAMPUNG; editing by Gopakumar Warrier)


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