Vietnamese robustas changed hands for prompt shipment this week, while Indonesian roasters returned to the physical market after the Muslim Eid al-Fitr holiday, buying beans at premiums to London futures, dealers said on Thursday.
Indonesian food manufacturers such as Mayora Indah and Kapal Api bought robustas at around 24,000 rupiah ($2.03) a kg, around $40 a tonne higher than London futures, according to local dealers.
Vietnam's grade 2, 5 percent black and broken beans were offered at discounts of $30 to $60 a tonne to London's November contract, a range on either side of last week's traded price of $50 below London values.
"We've done deals at minus $40 for Vietnamese beans. That will be for August and September shipments. Compared to Indonesian beans, the Vietnamese price is still very attractive," said a dealer in Singapore.
"I would say Vietnam is very active in selling beans. I think they are trying to clear stocks."
Vietnam produced around 1.4 million tonnes, or 23.3 million 60-kg bags in the 2013/2014 season, according to the Vietnam Coffee and Cocoa Association. Harvesting of the 2014/2015 crop is due to begin from late October, with output expected at around 23 million bags.
Vietnam, the largest robusta producer, competes with Indonesia in the robusta market. The bitter-tasting robusta beans are either blended with higher-quality arabica for a lower-cost brewed coffee or processed into instant coffee.
While local demand dominated physical trading in Indonesia this week, foreign trading houses were put off by the high prices, with the Sumatran grade 4, 80 defect robusta beans quoted at premiums of $20 to $30 to futures.
November robusta coffee futures on Liffe fell $11 to end at $1,996 per tonne on Wednesday.
The harvest in Indonesia, the world's third-largest coffee producer after Brazil and Vietnam, peaked in June. Flowering is expected to start again in August or September.
A Reuters poll in June showed Indonesia's coffee output is likely to plunge to a three-year low in 2014/15 due to unfriendly crop weather, while higher domestic consumption will soak up about half the produce.
