HANOI/BANDAR LAMPUNG, Indonesia, Aug 20 (Reuters) – Coffee trading in Vietnam was sluggish this week due to low stockpiles, while Indonesian premiums narrowed as a progressing harvest increased supply, traders said on Thursday.
Farmers in the Central Highlands, Vietnam’s largest coffee-growing area, sold coffee COFVN-DAK at 33,300-33,500 dong ($1.44-$1.45) per kg, compared with last week’s 33,000-33,500 dong range.
“Low stocks hit transactions. Almost no deals have been struck in the past weeks,” said a trader based in the Central Highlands province of Dak Lak.
“On the other hand, steady rains are providing enough water for the upcoming crop, with harvest season expected to start in late November or early December.”
Another trader also based in the coffee belt said the output of the upcoming crop season would be 3% lower than the previous one, at around 28 million 60-kg bags.
Traders in Vietnam offered 5% black and broken grade 2 robusta COFVN-G25-SAI at premiums of $80-$90 per tonne to the November contract, compared with the $80 premium last week.
November robusta coffee settled down $12, or 1%, at $1,384 per tonne on Wednesday.
In Indonesia’s Lampung province, Sumatran robusta premiums continued to narrow as supplies increased with the progressing harvest.
A trader said beans were offered at a $160 premium to the September contract this week, compared with $180-$190 premiums a week earlier.
Another trader quoted $200-$210 premiums to the November contract through March, compared with the $240 premium offered last week on September contracts. ($1 = 23,174 dong) (Reporting by Phuong Nguyen in Hanoi and Mas Alina Arifin in Bandar Lampung;)
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