HANOI/BANDAR LAMPUNG (Reuters) - Coffee prices in Vietnam edged higher this week on low supplies, while trading activity picked up in Indonesia where a major harvest was in full swing.
Farmers in the Central Highlands, Vietnam’s largest coffee growing area, sold coffee at 35,000 dong ($1.50) per kg on Thursday, compared with 33,000-34,000 dong a week earlier.
Supplies from farmers ran low and farmers were not keen to sell below 35,000 dong per kg, said a market analyst based in the Central Highlands.
Traders said almost no new deals were made this week, except for those trying to purchase beans for their export contracts signed earlier.
Traders in Vietnam offered 5% black and broken grade 2 robusta at a $110-$120 per tonne premium to the November contract. The premium was $100 to the September contract last week.
September robusta coffee settled up $10, or 0.6%, at $1,444 per tonne on Thursday.
Meanwhile, Indonesia’s grade 4 defect 80 robusta beans were offered at a $180 premium to the September contract, compared with last week’s $150 to $180 premium, a trader in the Sumatran province of Lampung said.
“Trade is getting more stable,” the trader said, due to steadier supply as the coffee harvest there progresses.
The trader said around 1,000 tonnes of beans had been transacted daily so far this week.
($1 = 23,327 dong)
Reporting by Phuong Nguyen in HANOI and Mas Alina Arifin in BANDAR LAMPUNG; Editing by Subhranshu Sahu