Vietnam domestic prices flat, Indonesia faces thin trade

Coffee prices in Vietnam remained flat on Thursday from a week ago with supplies building up from farmers, while trading was becoming thinner in Indonesia at the end of the harvest, traders said on Thursday.

Farmers in the Central Highlands, Vietnam's largest coffee-growing area, sold beans (COFVN-DAK) at 40,000 dong-40,800 dong($1.63-$1.66) per kg, compared with last week's 39,200-40,200 dong.

"It is supposed to be the busiest time of the year but given the current situation, many are tightening the belt so demands now are not high as expected," said a trader based in the coffee belt.

"Bean quality of this crop is good with nice, round shape and good colour".

Another trader said shipping rates had decreased over the past months, encouraging selling more than buying.

A trader offered 5% black and broken-grade 2 robusta (COFVN-G25-SAI) at a discount range of $60 to $70 per tonne to the March contract, unchanged from last week.

Another trader offered a $80-$90 discount range to the same contract.

Coffee exports from Vietnam are estimated to have increased 10.2% in the first 11 months of this year from a year earlier to 1.5 million tonnes, official data showed.

While according to Indonesian government data, the country exported 32,290.56 tonnes of Sumatra robusta coffee beans in October, up 15.69% on yearly basis.

Sumatra robusta coffee beans for January contract were offered at $80 premium, up from $50 premium last week, a trader said amid thinner supplies.

Another trader said some local exporters were offering $50-$80 premium to the January and February contracts, lower than $190-$200 premium last week.

Traders said foreign exporters offered $100-$120 premium to the January, February and March contracts, lower than $100-$150 premium last week.

"Trade is thin, probably until January because there are very few beans on the market," one of the traders said.

($1 = 24,510 dong)