Coffee markets stay muted in Vietnam, Indonesia on low supply

In line with a drop in London prices, domestic coffee prices in Vietnam's Daklak province fell to 42,000-43,000 dong (US$1.85-US$1.89) per kg from 44,000-44,500 dong last week, discouraging farmers to sell beans, traders said.

London ICE January futures fell 2.23% on September 27 to US$1,931 a tonne, in their sharpest fall in three weeks.

Exporters in Vietnam hardly clinched any deal as they offered the 5 percent black and broken grade 2 robusta on par with the January contract, while importers sought a discount of US$30-US$40 amid low demand.

Meanwhile, local farmers also refused to lower their prices amid a thin stockpile at the end of the 2016/2017 crop season after unfavourable weather at end-2016 hurt output.

Vietnam's coffee exports volume in the 2016/2017 crop year as of August was 1.4 billion tonnes, down 13  from the same period last year, but exports value during the same period rose 9% to $3.16 billion as prices were higher this year, customs data showed.

The coffee crop season in Vietnam starts in October and ends in September of the following year.

In Indonesia, prices of the grade 4 defect 80 robusta beans in the province of Lampung stood at a premium of US$10 to the November contract, unchanged from last week.

A trader in Lampung, Indonesia's main coffee growing area, said trade remained light as sellers ran out of beans.