HANOI/BANDAR LAMPUNG (Reuters) - Vietnam’s domestic coffee prices fell further on Thursday from a week ago with trading activities expected to remain slow until the 2019/20 crop year that begins in October, traders said.
Farmers in the Central Highlands, Vietnam’s largest coffee growing area, sold coffee at 33,300 dong ($1.43) per kg, down from 34,500-35,000 dong a week earlier.
“Though domestic supplies have run very low in the recent weeks, prices keep falling due to strong supplies from Brazil,” a trader based in Central Highlands said. “Vietnam’s robusta prices might edge lower in the upcoming weeks.”
Coffee trading in Vietnam has been sluggish for weeks at the end of the 2018/2019 crop year due to low supply and unattractive prices, he added.
The next harvest in Vietnam is expected to begin in the last quarter of 2019, and traders said the current weather conditions are favourable for the new beans.
September robusta coffee settled down $9, or 0.7%, at $1,360 per tonne on Wednesday.
Traders in Vietnam offered the 5% black and broken grade 2 robusta at a $140 premium per tonne to the September contract.
Meanwhile, Indonesia’s grade 4 defect 80 robusta beans were offered at $150 premium to September contract, compared with $150-$180 premium last week.
The premium fell as prices in London continued to decline, a trader in Lampung said. Buyers also consider prices in Lampung to be expensive, resulting in relatively light trade this week, the trader added.
Coffee harvest continues in Lampung.
($1 = 23,208 dong)
Reporting by Phuong Nguyen in HANOI and Mas Alina Arifin in BANDAR LAMPUNG; editing by Gopakumar Warrier