Coffee trading in Vietnam, the biggest robusta producer, slowed this week due to higher offers and thin demand, while the harvest in rival Indonesia picked up, traders said on Thursday. Vietnamese robusta grade 2, 5 percent black and broken beans were trading at premiums of $50-$65 a tonne to both London’s July as well as September contracts.
Beans grade 1 screen 16 stood at premiums of $110-$130 a tonne. The ICE July robusta contract closed $7 lower, or 0.4 percent, at $1,724 a tonne on Wednesday. Last week, grade 2 beans were quoted at premiums of $50-$80 a tonne to the July contract. “Foreign buyers are not buying, only somebody who is really short may take Vietnamese now,” a trader at a foreign firm in Ho Chi Minh City said.
Farmers and speculators have extended hoarding, he said, as domestic prices eased to 36,200-37,200 dong ($1.66-$1.71) per kg on Thursday from 36,300-38,500 dong last week, below the key 40,000-dong level. US coffee roasters have begun replacing beans from Vietnam with Brazil’s conilons after they shifted to a rare discount in price to their Asian counterparts, US traders and roasters said.