Vietnam's domestic prices edge down on slow trade, Indonesia flat
By Phuong Nguyen and Mas Alina Arafin
HANOI/BANDAR LAMPUNG, Indonesia, Aug 15 (Reuters) -Robusta prices edged down further this week in Vietnam amid sluggish trade at the end of the crop season, while prices were little changed in Indonesia as some traders started to hoard beans, traders said on Thursday.
Farmers in the Central Highlands, Vietnam's largest coffee-growing area, were selling beans COFVN-DAK for 116,900-118,000 dong ($4.67-$4.71) per kg, down from 122,000-123,000 dong range last week.
"The domestic coffee market is tepid, in contrast to an upbeat global market as demand from major importing countries have recovered," said Nguyen Ngoc Quynh, deputy chief of the Mercantile Exchange of Vietnam.
"This situation will last for a few more months," he added.
Vietnam's new crop season will officially start from October. Beans are expected to come in bulk from November.
Robusta coffee LRCc2 for November delivery settled up $105 at $4,292 per metric ton as of Wednesday's close.
Traders offered 5% black and broken-grade 2 robusta COFVN-G25-SAI at a premium range of $450-$600 per metric ton to the November contract.
Vietnam's coffee exports in the first seven months of this year were 979,353 metric tons, down 12.4% from a year earlier, customs data showed. Vietnam exported 76,982 metric tons of coffee in July, an increase of 9.7% from the previous month.
Indonesia's Sumatran robusta beans were offered at $320 premium to the September contract, unchanged from last week, a trader said.
Premium to the November contract was down by $50 this week to $237, the trader added.
"This week, coffee beans deliveries have dropped by more than 60% due to a fall in prices earlier this week, causing some (traders) to start holding up their stock," the trader said.
($1 = 25,035.0000 dong)
Reporting by Phuong Nguyen and Mas Alina Arifin; Editing by Devika Syamnath
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