Prices edge down further in Vietnam, thin supplies in Indonesia
By Phuong Nguyen and Mas Alina Arafin
HANOI/BANDAR LAMPUNG, Indonesia, Nov 7 (Reuters) -Domestic prices edged down further in Vietnam ahead of the harvest peak amid concerns about an approaching storm, while supplies dwindle in Indonesia, traders said on Thursday.
Farmers in the Central Highlands, Vietnam's largest coffee-growing region, sold beans COFVN-DAK for 105,500 dong to 106,000 dong ($4.16 to $4.18), down from last week's 108,200 dong to 108,600 dong.
The coffee belt received mild rainfall in the past two days that would help the plants flourish, traders said, as they were still in their final stages of development.
"However, we are concerned about the upcoming Typhoon Yinxing, which may cause rains in the coffee belt and hinder the picking and drying of beans," said a trader in the coffee belt.
Domestic prices have been falling in Vietnam since the beginning of the new crop season.
"If the price falls below 100,000 dong per kilogram, beans hoarding like in early 2024 may recur, with people holding on to beans while waiting for higher prices," said Nguyen Ngoc Quynh, deputy chief of the Mercantile Exchange of Vietnam.
One trader offered 5% black and broken-grade 2 robusta COFVN-G25-SAI at the same level as London prices to the January contract.
Another trader offered a premium of $10 to the same contract.
Vietnam exported 1.15 million metric tons of coffee in the first 10 months of this year, down 11.2% from the same 2023 period, government data showed. In October, it exported 44,000 tons of coffee, up 1.5% from a year earlier.
In Indonesia, Sumatra beans were offered at a premium of $180 to the December contract in thin supply, one trader said.
Another trader quoted a premium of $200 to the January contract unchanged from a week ago.
($1=25,380.0000 dong)
Reporting by Phuong Nguyen and Mas Alina Arifin; Editing by Nicholas Yong
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