SINGAPORE, Dec 19, 2008 (Dow Jones Commodities News via Comtex) -- Coffee prices in Asia rose slightly in the week to Friday, as traders said farmers in Vietnam, Asia's largest producer, had sold enough for the time being, and decided to hold back before the new year.
The cash discount to the March Euronext.liffe contract in Vietnam fell slightly to $140-$160 a metric ton from around $165/ton a week earlier.
The benchmark March robusta contract on London's Euronext.liffe settled at $1,674/ton Thursday, down $11 from a week ago.
The higher prices were mainly because farmers were holding back, said a trader in Vietnam.
"They think they have sold enough for the time being, as they have some money now - they don't need further financing for the upcoming holidays by selling more beans," said the trader.
Some exporters were also just fulfilling earlier contracts, and were not keen to sign new ones, partly due to the approaching holidays, he added.
The Vietnam Coffee and Cocoa Association said Friday the country's coffee exports in 2008 are expected to fall 16.2% to 1 million tons. The coffee export market probably won't improve in 2009, said Doan Trieu Nhan, a senior advisor to the association, citing the ongoing global financial turmoil, falling prices and speculative trade.
Exports from Indonesia also remained thin, traders said. The country's coffee output will probably fall for a fourth consecutive year in the 2009-10 crop year as low prices damp farmers' planting interest, said Hassan Widjaja, chairman of the Association of Indonesian Coffee Exporters.
Output for the 2008-09 crop year, which ends Mar. 31, is estimated around 350,000 metric tons, he said. In India, another major Asian producer, coffee prices in U.S. dollar terms rose in the week, but were little changed in Indian rupee terms, traders said.
The robusta cherry AB crop was quoted around $1,950/ton, up from $1,800/ton, and Arabica plantation grade A prices were at $2,725/ton, up from $2,650/ton.
Source : Market Watch