ASIA COFFEE-Tepid trade in Vietnam, premiums drop in Indonesia

Reuters06-20

By Phuong Nguyen and Mas Alina Arafin

HANOI/BANDAR LAMPUNG, Indonesia, June 20 (Reuters) - D omestic coffee prices in Vietnam edged slightly lower this week on tepid trade activities and low supplies, while premiums in Indonesia fell from last week, traders said on Thursday.

Farmers in the Central Highlands, Vietnam's largest coffee-growing area, were selling beans for 118,800-120,000 dong ($4.67-$4.72) per kg, down slightly from 120,000-121,000 dong range a week ago.

"The market is awaiting new supplies from Brazil. The weather there is reported to be favourable so hopefully it is going to be a good one," a trader based in the coffee belt said.

"Supplies in Vietnam are exceptionally thin now and the prices remain high so not so many deals were sealed."

Robusta coffee for September delivery settled up $89 at $4,146 per metric ton as of Wednesday's close.

Another trader said weather conditions in Vietnam were still being monitored, with rainfall expected to increase and continue through October.

According to traders and official data, in the first eight months of the 2023/24 crop year that started last October, Vietnam exported nearly 1.2 million metric tons of coffee, equivalent to 80% of the current crop's output and a decrease of 7% compared with the same period of the previous crop year.

Indonesia Sumatra robusta coffee beans were offered at $980 premium to the July contract this week, falling from $1,050 premium last week, one trader said.

Another trader quoted $950 premium to the September contract, lower than last week's $980 premium "due to rising prices in London terminal".

($1 = 25,450.0000 dong)

(Reporting by Phuong Nguyen and Mas Alina Arifin; Editing by Mrigank Dhaniwala)

((phuong.nguyen@thomsonreuters.com; +84-24-3852-9623))

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