Asia Coffee-Vietnam market tepid, discounts unchanged in Indonesia

Trading activity in Vietnam has been slow this week due to low inventories, weak demand, and lower global prices, traders said on Thursday, while discounts in Indonesia have remained stable due to scarcity of supplies ahead of a mini harvest.

Farmers in Vietnam’s Central Highlands region, the country’s largest coffee-growing region, sold coffee COFVN-DAK for 41,200-42,400 dong ($1.80-$1.85) per kg, up from 40,200-42,000 dong last week.

“Due to a shortage of supplies, trade activity is not as robust. Farmers have sold approximately 80-90 percent of their crops “”beans,” a trader based in the coffee belt explained.

Traders in Vietnam offered 5% black and broken-grade 2 robusta COFVN-G25-SAI at a discount of $240-250 per tonne, compared to the previous week’s range of $220-240.

On Wednesday, the London ICE May contract LRCc2 settled down $31, or 1%, to $2,139 per tonne.

Another trader stated that coffee cherries had begun to appear; however, rising fertiliser prices and a fertiliser shortage may have an adverse effect on tree growth and bean quality.

A trader in Lampung province said he was offered a $150 discount on Sumatran robusta beans for the April-May contract, while another offered a $200 discount on the May contract. Both remained unchanged from the previous week.

According to a trader based in the region, a mini harvest occurred in Lampung, although supplies were raised in only a few areas in the province’s western region.

“New beans are still scarce due to the uneven distribution of the mini harvest,” the trader explained.

According to some farmers in the region, they have struggled with heavy rain over the last three months, which has resulted in coffee cherries falling off the trees before reaching maturity.

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