Tepid trade in Vietnam as traders await fresh beans

By Phuong Nguyen and Mas Alina Arifin

Activity remained quiet in Vietnam on limited bean supplies as fresh beans from the current harvest have yet to pick up, while Indonesia flipped to discounts, traders said on Thursday.

In the Central Highlands, its largest coffee-growing region, farmers sold beans (COFVN-DAK) at 113,700 dong to 114,500 dong ($4.32 to $4.35), compared with last week's range of 114,000 dong to 115,000 dong.

Robusta coffee RC2! for January delivery settled up $33, or 1%, at $4,453 a metric ton on Wednesday.

Traders said it had been raining in the coffee-growing areas in the past week but the rains had no impact on the crop.

"Rains at the moment are not very concerning. It is actually good for the plants," said a trader based in the coffee belt.

"Beans are not very abundant at the moment. Learning from past crop's experience, everyone, including traders, buyers and farmers, is very cautious," the trader added.

Traders offered 5% black and broken-grade 2 robusta (COFVN-G25-SAI) at a discount of $50 per ton to the January LIFFE contract.

In Indonesia, Sumatra robusta coffee beans were offered at $40 discount to the November and December contract, compared with $10-$20 premium last week, according to a trader.

Another trader said the beans were offered at $30 discount to the January contract, widening from $20 discount.

Coffee farmers in West Lampung said it was still raining, which may potentially lower the output of next year by around 15% to 25%.

($1 = 26,339.0000 dong)