DJ Asian Coffee: Prices Flat As Vietnam Crop Ends; India Bullish

SINGAPORE, Apr 04, 2008 (Dow Jones Commodities News via Comtex) -- -- Asian coffee prices were flat in the week to Friday as Vietnam's coffee season draws to a close and traders remained on the sidelines as prices remain low on London's benchmark futures exchange.

The most traded July contract on London's Euronext.liffe exchange, which traders in Asia are pricing against, drifted up $25 to end Thursday at $2,256 a metric ton.

In Vietnam, the coffee season is coming to a close with few offers from exporters. Farmers are holding on to around 20% of the crop, or up to 200,000 tons.

"Farmers are cash-rich now, and have enough money to buy fertilizers for their next crop. They're not keen to sell at current levels, so exporters aren't offering very much either," said a trader based in Ho Chi Minh City.

Traders are now turning their attention to the upcoming crop from Indonesia, Asia's second largest producer of robusta coffee. The new crop is estimated to be around 10% larger than the previous year at nearly 500,000 tons.

Robusta arrivals from Lampung have increased to 1,500 tons from 1,000 tons the previous week. Traders expect flows to increase to around 4,000 tons per week by May.

"Offers are still few, as roasters are well-covered in the short term. We're expecting inquiries to increase in the coming weeks with more coffee on the market," said a trader based in Lampung.

Indonesian robusta grade 4, up to 80 defects, was quoted at around $2,196/ton for April to June shipment, a tad down from $2,200/ton the previous week.

India's robusta coffee prices were unchanged on week as planters refused to lower prices on expectation of a likely rise in overseas prices in the next few weeks, traders said.

"Many of the planters expect domestic prices to appreciate in the coming weeks as international markets could rise on fund buying," said trader P.J. Suresh Babu.

Offers for robusta cherry AB were quoted at $2,250-2,300/ton, free-on-board Cochin port, for April shipment, unchanged from a week ago.

-By Tor Ching Li, Dow Jones Newswires; 65 6415 4086; chingli.tor@dowjones.com

(END) Dow Jones Newswires

04-04-08 0010ET

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