Asia coffee: Vietnam’s discounts steady, rain may hit supplies

Supplies of new coffee beans from Vietnam’s Central Highlands have slowed down, as scattered rain in the area disrupted cherry picking and drying process, traders said on Thursday. Farmers in the Central Highlands, Vietnam’s largest coffee-growing area, sold beans at 39,200-40,200 dong ($1.58-$1.62) per kg, slightly lower than 38,900-40,100 dong range a week ago.

“Rainfall has delayed the cherry-picking process in some areas the Central Highlands, raising concerns over supply in the next few weeks,” said a trader based in the Central Highlands province of Dak Lak.

Another trader also based in the coffee belt said it rained only 1-2 days and the weather now has improved a lot. “Rains in such short period will unlikely affect the bean’s quality,” the trader said, adding that farmers have already harvested 38-40% of their crop. Traders in Vietnam offered 5% black and broken-grade 2 robusta at a discount range of $60-$70 per tonne to the March contract, unchanged from last week. January robusta futures on ICE settled down $20, or 1% on Wednesday, at $1,814 per tonne.

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Source: Reuters