Vietnam coffee prices down ahead of new harvest

HANOI/BANDAR LAMPUNG, Indonesia, Sept 26 (Reuters): Coffee markets in major robusta producers in Asia stayed lacklustre, with local prices falling this week ahead of the new harvest in Vietnam, while buyers had already stocked up in Indonesia, traders said on Thursday.
Farmers in the Central Highlands, Vietnam's largest coffee-growing area, sold beans COFVN-DAK for 120,000-120,800 dong ($4.87-$4.91) per kg, down from last week's 123,000-123,400 dong range.
Traders said the weather until now remained supportive for the trees but trade was quiet.
"Some traders have started to seek for beans but in a very cautious manner as some have been still facing financial issues since late last year when the prices started to skyrocket, while others are unsure about weather condition in the upcoming days," a trader based in the coffee belt said.
The Mercantile Exchange of Vietnam said some coffee-growing areas had begun to harvest early ripe beans and offered them at 120,000 dong per kg.
"It is expected the prices of the new crop season would remain high as output decreases and demand from the main market, Europe, improves," it said in a note earlier this week.
Robusta coffee LRCc2 for November delivery settled down$160, or 3 per cent, at $5,152 per metric ton, as of Wednesday's close.
Traders offered 5 per cent black and broken-grade 2 robusta COFVN-G25-SAI at a discount range of $200-$250 per ton to the January contract.
In Indonesia, Sumatra robusta coffee beans were offered at a discount range of $450-$500 to the October contract and a discount of $250 to the November contract, a trader said. It was a $300-$400 discount range last week to the November contract.
Another trader quoted a $450 discount to the November contract, compared with a $300 discount to the same contract last week.
"Buyers, both domestic and foreign ones, backed out as they have full stocks," the second trader said.