Coffee markets in major Asian exporters were muted as London robusta prices fell to multi-month lows, even as Indonesian coffee prices reversed its downward trend.
Indonesian traders quoted the grade 4 defect 80 robusta beans COFID-G4-USD at premiums in the range of $70-$80 to the London ICE November contract, compared with an about $10 discount last week.
But trade was increasingly quiet in Indonesia’s coffee market this week, traders said on Thursday. Exporters in the major coffee growing region Bandar Lampung said stocks were also running out since the harvest had concluded.
In Vietnam, exporters quoted the 5 percent black and broken grade 2 robusta COFVN-G25-SAI variety at a discount of $70-$80 to the London ICE January contract LRCF8 .
Vietnamese farmers quoted prices at 42,200-43,000 dong ($1.86-$1.89) per kg COFVN-DAK , lower than 45,000-45,700 dong a week earlier, traders said.
“Farmers were discouraged by the fall of London prices and held back beans, while carryout was low in the last month of the crop season,” said independent analyst Nguyen Quang Binh.
November robusta coffee LRCc2 settled down $24 on Wednesday, or 1.2 percent, at $1,945 per tonne, after hitting a session low of $1,914, the weakest for the second position since May 25. January robusta closed at $1,930, Thomson Reuters data showed.
Trade and exports in Vietnam have been slow for several months towards the close of its 2016/2017 crop season, ending in September. The government expects January-August coffee exports to have fallen 19.4 percent annually to 1.026 million tonnes. = 22,727 dong)
by Reuters
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