Price Variations For Asian Coffee
Farmers held stocks as they waited for prices to rebound, and most traders expect volumes to increase in the near term if futures rise another $30-$40.
In Vietnam, lower prices kept trading to a minimum as farmers largely withdrew from the market after a couple of days of busy sales the week before. A Ho Chi Minh City-based trader said buying is more likely to occur on the spot month.
Offers for Robusta grade 2, 5% black and broken for March/April shipment were quoted around $1,132-1,147/ton, free-on-board Ho Chi Minh City, down from $1,180-1,190/ton a week earlier.
Trading was quiet as well in Indonesia, where prices were down on the futures losses.
More beans from the new Robusta crop are coming onto the market, but significant volumes aren't expected for a few more weeks, a Lampung-based exporter said.
Despite a fall in Robusta prices, prices are still too high for exporters to make a profit, he said. "The buyers are saying they want a minus 50, minus 40 differentials."
On Friday, offers for Robusta grade 4, 80 defects, were quoted around $1,157-1,187/ton, FOB Lampung, compared with $1,220/ton a week earlier.
Sales of Arabica were steady but not in any large quantities, as more trading were done for prior commitments than for fresh sales. Deliveries to Starbucks and other American buyers were steady, as they are offering $150 to $200 more per ton than most exporters.
Offers for Mandheling grade 3 Arabica coffees were quoted around $2,850/ton, FOB Medan, compared with around $3,000-3,100/ton last week.
Prices were lower in India on easier demand for exports and declines in international prices, with sellers holding stocks, waiting for better prices.
"Demand for Indian Robusta coffee abroad, which was strong until last week, has dampened because of haggling over prices," said a Bangalore-based exporter.
There is hardly any trade going on in Arabica beans as the prices quoted by growers are too high and supplies are limited, said a Chikamagalur-based trader.
On Thursday, Robusta Cherry AB, FOB Cochin, was offered around $1,310/ton, down from $1,350/ton last week. Arabica Plantation A was offered at $2,350/ton, compared with $2,470/ton last week.