Vietnam, Indonesia flip to discounts on high London prices
By Phuong Nguyen and Mas Alina Arafin
HANOI/BANDAR LAMPUNG, Indonesia, Sept 19 (Reuters) -Vietnam and Indonesia coffee export prices slipped to discounts against the international benchmark this week as robusta prices in London rose amid supply worries in Vietnam and shrinking demands in Indonesia, traders said on Thursday.
Farmers in the Central Highlands, Vietnam's largest coffee-growing area, soldbeans COFVN-DAK for 123,000-123,400 dong ($5.00-$5.02), up from last week's 121,000-121,500 dong range.
According to traders, some parts of the coffee belt recorded rains due to the tropical depression that hit central Vietnam, though trees remained unharmed.
New crop season in Vietnam will officially start from next month.
The Mercantile Exchange of Vietnam (MXV) said coffee exports in 2024 may fall to the lowest level in 13 years on low output due to weather impacts.
"Some traders in the Central Highlands have started to buy beans from farmers but the volume is not much due to high prices," MXV said in a statement.
"Normally beans will be harvested first in Kon Tum then Gia Lai and other provinces."
Robusta coffee LRCc2 for November delivery settled up $31, or 1%, at $5,334 per metric ton, as of Wednesday's close.
Traders offered 5% black and broken-grade 2 robusta COFVN-G25-SAI at a discount range of $150-$180 per ton to the November contract.
In Indonesia, Sumatra robusta coffee beans offered at a discount rate of $300-$400 to the November contract, compared with the $280 premium last week "due to the shrinking appetite from buyers", one trader said.
Another trader also quoted $300 discount to the November contract. It was a $70 premium last week.
"This is an extraordinary drop," the second trader said.
($1 = 24,580.0000 dong)
Reporting by Phuong Nguyen and Mas Alina Arifin; Editing by Shreya Biswas
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