October 31, 2019 / 7:55 AM / a month ago

Asia Coffee-Vietnam local prices edge up; crops likely to be safe from heavy rains

HANOI/BANDAR LAMPUNG, Indonesia, Oct 31 (Reuters) - V ietnam’s domestic coffee prices continued to edge higher this week on limited supplies, while the recent heavy rains in the country’s largest coffee-growing area would likely do no harm to the crops.

Farmers in the Central Highlands, Vietnam’s largest coffee-growing area, sold coffee COFVN-DAK at 31,800-32,600 dong ($1.37-$1.41) per kg on Thursday, slightly up from 31,000-31,500 dong last week.

“The harvest isn’t in full swing until mid-November; farmers now are just selectively picking full-ripened beans,” a trader based in the region said.

“Heavy rains may rip a small amount of coffee cherries off the trees but will not harm the crop,” he added.

January robusta coffee settled up $15, or 1.18%, at $1,291 per tonne on Wednesday.

“International markets recovered on Wednesday but prices are still unattractively low,” a Ho Chi Minh City-based trader said.

Traders in Vietnam offered 5% black and broken grade 2 robusta COFVN-G25-SAI at a $80-$100 premium per tonne to the January contract on Thursday, compared to the range of $100-$120 last week.

Coffee exports from Vietnam are expected to fall an estimated 13.8% in the first 10 months of this year from a year earlier to 1.365 million tonnes, equal to 2.28 million 60-kg bags, official data released on Tuesday showed.

Meanwhile, Indonesia’s grade 4 defect 80 robusta beans COFID-G4-USD were offered at premiums of $270 to the January contract, increasing from $260 last week.

“Price increasing because price in London terminal increasing significantly,” said a trader based in the region.

“Local traders are still waiting for better price to sell their coffee,” he added. ($1 = 23,199 dong) (Reporting by Phuong Nguyen in HANOI and Mas Alina Arifin in BANDAR LAMPUNG; Editing by Rashmi Aich)

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