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COFFEE - HANOI, April 9 - Coffee prices in Vietnam continued to edge lower this week on tepid trade amid thin demand, traders said on Thursday, while Indonesian farmers expect lower output from the upcoming harvest.
Farmers in the Central Highlands, Vietnam's coffee belt, sold beans at 84,700 dong to 85,700 dong ($3.22 to $3.26) per kg, down from last week's 90,500 dong to 91,000 dong range.
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Robusta coffee for July delivery settled up $25, or 1%, at $3,256 a ton on Wednesday.
"Farmers are holding onto beans as prices are too low. They don't want to sell," said a Ho Chi Minh City-based trader, adding that the market was quieter as both buyers and sellers were waiting on clearer signals.
Another trader said scorching weather in the coffee-growing regions, combined with rising fuel prices owning to the Middle East war, have driven up the price of diesel used to run irrigation pumps.
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Traders offered 5% black and broken-grade 2 robusta at a premium of $100 per ton to the May LIFFE contract.
Vietnam exported 585,000 metric tons of coffee in the first quarter, up 14% from a year earlier, government data showed. Export revenue over the period fell 5% to $2.75 billion.
In Indonesia, Sumatra robusta coffee beans were offered at a $175 premium to the May contract, unchanged from a week ago, a trader said.
Another added that beans were offered at a $200 premium for the July contract, up from last week's $170 premium.
Coffee farmers in West Lampung said persistent rainfall across plantations could cut output by around 50% compared to last year. ($1 = 26,318.0000 dong)
