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Asia Coffee-Prices fall in Indonesia amid harvest; Vietnam on holidayTuesday, April 11, 2017 > 09:26:51
Times of India
Prices of Indonesian coffee beans extended their decline this week amid harvest, while trade in rival Vietnam was light as supply thinned.
Traders in Sumatra, Indonesia's main coffee-growing area, quoted robusta grade 4, 80 defects at a discount of $30-$40 per tonne to London's ICE May contract, wider than last week's discount of $25, as supply increased on harvest.
"Coffee trade is getting busy again. There were about 1,400 to 1,500 tonnes of coffee (beans) that came to our storehouse this week," a trader said.
Meanwhile, coffee market in Vietnam, the world's second largest exporter of the bean, slowed earlier in the week. Vietnamese markets were closed on Thursday.
"The market is fairly quiet--few buyers, few sellers," said Nguyen Quang Binh, head of coffee section at Visimex Joint Stock Company.
Local prices quoted by farmers on Wednesday ranged between 46,500-47,400 dong ($2.05-$2.09) per kg in Daklak province , the country's major coffee grower, dropping from last week's 47,300-48,000 dong as global prices fell, traders said.
The Vietnam 5-pct black and broken grade 2 robusta was quoted on Wednesday at a discount of $25-$40 a tonne below the London ICE July contract, compared with last week's discounts of $20-$30.
Traders said farmers were reluctant to sell beans as stockpiles thinned, with only about 20-30 percent left, and as buyers rejected lower-quality beans affected by a surprisingly long rainfall in December last year.
"There are so many bad beans out there being rejected... the rejection ratio during the taste test is very high," said a Ho Chi Minh City-based trader.