ASIA COFFEE-Vietnam coffee trading muted on low supplies, heavy rains in Indonesia
By Phuong Nguyen and Mas Alina Arifin
HANOI, Aug 7 (Reuters) - Coffee trading in Vietnam slowed at the end of the crop season this week due to low stockpiles and weaker demand, while heavy rains were recorded in Indonesia's coffee growing area in the middle of the harvest, traders said on Thursday.
Farmers in the Central Highlands, Vietnam's largest coffee-growing region, sold beans COFVN-DAK at 100,000-100,700 dong ($3.82-$3.84)per kg, compared with 99,500-99,700 dong range a week ago.
"Farmers are not selling at these prices. It is difficult for those who want to buy Vietnamese beans at the moment," said a trader based in the coffee belt.
"There is almost no activity in the past week. Beans from Indonesia's current harvest are available at more reasonable prices."
Robusta coffee LRCc2 last settled down $19, at $3,340 a metric ton as of Wednesday's close.
Another trader noted that most warehouses were limiting trading activities and waiting for clarity before making decisions, as Vietnam's new crop year is set to officially begin in two months although new beans may arrive from November.
Vietnam exported 1.05 million metric tons of coffee in the January-July period, up 6.9% from the same period last year, government data showed. Coffee export revenues rose 64.9% to around $6 billion in the period.
July exports stood at 103,000 tons, an increase of 34.6% from a year earlier.
In Indonesia, Sumatra beans were quoted $150 premium to the September/October contract, up from $140-150 premium last week.
Another trader said beans were offered at $100-$150 premium to the November contract, compared with $100 premium last week.
Downpours were recorded in the coffee area where farmers' plantations are approaching the coffee blossoming period.
"Currently, coffee needs dry weather but it's raining heavily recently as if it was the rainy season," a farmer said.
"The risk of flower rot is very high," he added.
($1 = 26,195.0000 dong)
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