HANOI/BANDAR LAMPUNG, (Indonesia): Coffee trading activities were thin in Vietnam this week ahead of Christmas, with supplies remaining low as harvest was disrupted due to unfavourable weather in the country’s main coffee growing area, traders said on Thursday. Farmers in the Central Highlands, Vietnam’s largest coffee-growing region, sold beans for 122,500-124,000 dong ($4.81-$4.87) per kg, compared with last week’s 122,000-124,900 dong.
“Harvest rates vary from farmer to farmer, with some finished and others just starting, but overall, the harvest is probably around 30%-60%,” Laleska Moda, analyst from commodities firm Hedgepoint Global Markets, said following her trip to Vietnam’s coffee production area.
“The rain in Dak Lak in November and December is likely to affect the quality of the beans as many producers have already dried their coffee. In Lam Dong, higher quality beans are expected,” Moda added. Vietnam’s Lam Dong province offers both robusta and arabica beans. Traders based in the coffee belt said sunshine was there for the past two days after a week of rain.
“Beans are still in their drying process and not ready for sale yet,” said a trader based in Dak Lak. “Many exporters are struggling to fulfil their December deliveries.”
Robusta coffee for March delivery settled down $29 at $5,139 per metric ton as of Wednesday’s close. Traders offered 5% black and broken-grade 2 robusta at a discount of $150 to the March contract. In Indonesia, Sumatra robusta coffee beans were offered at a $200-$230 discount range to the January and February contract, unchanged from last week.
Another trader quoted beans at a $230 discount to the March contract, compared with a $150 discount to the same contract last week “to adjust to the London prices”.
Source: Brecorder
