May 14, 2020 / 7:29 AM / 23 days ago

Asia Coffee-Vietnam prices track London lower, Indonesia quiet

HANOI/BANDAR LAMPUNG, Indonesia, May 14 (Reuters) - V ietnamese coffee prices fell this week, tracking weakness in London prices, while trade in Indonesia was quiet as market participants waited for new harvest, traders said on Thursday.

Farmers in the Central Highlands, Vietnam’s largest coffee-growing area, sold coffee COFVN-DAK at 30,000 dong ($1.28) per kg, lower than 31,000-32,000 dong last week.

In London, July robusta coffee settled down $33, or 3%, at $1,147 per tonne on Wednesday after a 1.5% drop in the previous session.

“Global prices eased this week on fears of a second wave of coronavirus infections, resulting in the fall of domestic prices,” said a trader based in Ho Chi Minh City.

“At this moment, both demand and supply are very low. Virtually no new deals have been clinched.”

Vietnam exported 165,799 tonnes, or 2.76 million 60-kg bags, of coffee last month, down 2.5% from March, customs data showed.

Traders in Vietnam offered 5% black and broken grade 2 robusta COFVN-G25-SAI at a $170-$180 premium per tonne to the July contract on Thursday, lower than last week’s $200 premium.

Meanwhile, traders in Indonesia’s Lampung province said Sumatran robusta beans were offered at a $260-$280 premium to the July contract, compared with $260-$270 last week.

New supplies have started to come in but remain limited in volume, one of the traders said. The main robusta harvest is expected to start next month.

“Trade is still pretty quiet, maybe it will pick up after the Eid Al-Fitr holiday, which falls on May 23-24,” the trader said.

$1 = 23,365 dong Reporting by Phuong Nguyen in Hanoi and Mas Alina Arifin in Bandar Lampung; Editing by Subhranshu Sahu

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