Coffee prices across Asia fell in the week to Tuesday, tracking sharp losses in international coffee futures.
On Monday, the May robusta contract on the London International Financial Futures and Options Exchange finished at $1,117 a metric ton, down $40, or 3.5%. It was $82 lower than a week earlier.
In Vietnam, trading activities picked up pace as sellers rushed to unload their stocks on fears of a further decline in prices, traders said.
“Exporters were under pressure (to sell) after the London market dropped so much,” said a Ho Chi Minh City-based trader.
Offers for robusta grade 2, 5% black and broken, were quoted around $1,080-$1,090/ton, FOB, Ho Chi Minh City, compared with $1,140-$1,160/ton last week.
Trade in Indonesia and India, however, turned quiet amid a disparity in price expectations between buyers and sellers.
“They (farmers) were still asking for higher prices,” said one Lampung-based trader.
“You’d have to be really short to take up their offers,” he added.
Arrivals of fresh robusta beans are gradually increasing but “still too small to have much effect on prices,” the Indonesian trader said.
Harvesting activities are underway, but transporting and drying are hampered by intermittent rains, he said.
Offers for robusta EK1 grade 4 80 defects were quoted around $1,100/ton, FOB, Lampung, compared with $1,200/ton a week earlier.
Offers for Mandheling grade 3 arabica coffee were quoted around $2,800/ton, FOB, Medan, compared with around $2,900/ton last week, FOB, Medan.
“Usually after such a sharp downward movement, market players prefer to sideline, waiting for prices to stabilize before resuming activities,” said one Bangalore-based trader, citing the market situation in India.
“It’s a holiday here tomorrow, so there isn’t much interest to trade,” he added.
Markets in India will close Wednesday for a public holiday. Trade resumes Thursday.Indian robusta cherry AB, was offered around $1,300/ton, FOB, Cochin, down from $1,330-$1,340/ton last week, while arabica plantation A was offered at $2,340/ton, compared with $2,400/ton last week.
Source : Comtex Finance Via Thomson Dialog NewsEdge