HANOI/BANDAR LAMPUNG, Indonesia, Oct 8 (Reuters) - Coffee prices in Vietnam fell for the third consecutive week following a drop in London prices, while premiums in Indonesia widened to compensate for lower benchmark price, traders said on Thursday.
Farmers in the Central Highlands, Vietnam's largest coffee-growing area, sold coffee COFVN-DAK at 31,300-31,800 dong ($1.35-$1.37), compared with the 31,500-32,000 dong range last week.
The London ICE January contract had shed 3.7% over the past week as of Wednesday’s close, hitting a two-and-a-half-month low, Refinitiv Eikon data showed.
“Trading activities have come to a halt as there are no beans left from the 2019/20 crop season while new beans haven’t ripened yet,” a Central Highlands-based trader said.
“Beans picking will not start until November. But I am so worried that it will be raining at that time.”
Another trader also based in the region said the output for this 2020/21 season would be 5% lower from the last season.
Traders in Vietnam offered 5% black and broken grade 2 robusta COFVN-G25-SAI at premiums of $160 per tonne to the January contract. The premiums were $100-$110 per tonne to the November contract last week.
Another trader quoted premium to the January contract at $200 per tonne.
Sumatran robusta beans were also offered with higher premiums this week, traders in Indonesia’s Lampung province said.
One trader offered with $150 premium to the November contract, up from $190 last week, while another offered $250-$270 premium.
The rise in premium was to compensate for lower benchmark price, the traders said, while new output from current harvest has started to slowdown. ($1 = 23,191 dong) (Reporting by Phuong Nguyen in Hanoi and Mas Alina Arifin in Bandar Lampung; Editing by Rashmi Aich)
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