Vietnam market upbeat post holidays, discounts widen in Indonesia

By Phuong Nguyen and Mas Alina Arifin

HANOI, - Vietnam's domestic coffee market was upbeat this week, boosted by higher supply and demand after a week-long holiday, while discounts widened in Indonesia on higher London prices, traders said on Thursday.

Markets in Vietnam and Indonesia were closed last week for the Lunar New Year holidays.

Farmers in the Central Highlands, Vietnam's largest coffee-growing region, sold beans at 129,500-130,500 dong per kg. The prices were at 121,500-122,500 dong before the holidays.

LIFFE robusta coffee for March settled up $98 at $5,646 per metric ton, as of Wednesday's close.

"The market is upbeat as farmers have started to sell as they fear prices would drop," a trader based in the coffee belt said, adding demand was also healthy.

According to the Mercantile Exchange of Vietnam, although supplies built up post holidays, supply was limited compared to market demand.

"Any changes in President Trump's tariff policies on imports from South America will have a strong impact on global coffee prices, including Vietnam," Nguyen Ngoc Quynh, deputy head of the agency, said.

"If it happens, it is likely that green beans prices will set a new record next week."

Traders also offered 5% black and broken-grade 2 robusta at a discount of $250 to the May LIFFE contract.

Vietnam exported 140,000 metric tons of coffee in January, down 41.1% from the same month last year, government data showed.

In Indonesia's Lampung province, discounts to March-April contracts widened to $420 this week from discounts of $240-$250 to the March contract two weeks ago due to high benchmark prices in London.

Another trader offered a $400 discount to the May contract this week, versus a $240 discount for the same contract two weeks earlier.

This article was generated from an automated news agency feed without modifications to text.