Asian Coffee: Prices Up Tad On Steady Physical Demand

Asian coffee prices were slightly higher in the week to Friday on firm buying interest for Indonesia's new coffee harvest.

The September contract on the London Euronext.liffe exchange, which traders in Asia are starting to price against for future shipments, closed $3 lower Monday at $2,234 a metric ton.

In Indonesia, Asia's second-largest producer of robusta coffee, crop arrivals have risen to around 4,500 tons a week.

Local offers for Indonesian robusta grade 4, up to 80 defects, are mostly around $2,114/ton, up from $1,995-$2,005/ton last week.

In Viet Nam, FOB offers for Viet Nam robusta grade 2, 5% black and broken beans for June-September shipment were quoted around $2,154/ton - up from $2,000/ton the previous week.

However, trading remains sluggish as buyers and sellers await better prices.

"Attention has turned to Indonesia, where prices are more attractive," said a trader based in Ho Chi Minh City.

In India, coffee prices rose on the back of a general gain in benchmark commodity futures prices.

Offers for robusta cherry AB were quoted at $2,335-$2,360/ton, free-on-board Cochin port, for immediate shipment, up from $2,300/ton-$2,360/ton a week ago. Arabica plantation grade A was offered at $3,110/ton, up from $3,000/ton-$3,060/ton a week ago.

However, exporters expect prices to fall in the coming months as most of the harvest is complete and growers will be looking to offload their stock. (Dow Jones)