Asia Coffee: Trade remains frozen in Vietnam amid lockdown easing in some parts
By Phuong Nguyen and Mas Alina Arifin
HANOI/BANDAR LAMPUNG, Indonesia (Reuters) - Coffee trading in Vietnam remained frozen even as the government eased a 15-day lockdown for some parts of the Southeast Asian country, while fresh beans had started to come in Indonesia, traders said on Thursday.
Late on Wednesday, Vietnam's government extended a two-week period of social distancing for 12 provinces in the country, but lifted those measures for most rural areas, including the coffee belt of Central Highlands.
"Although restrictions have been eased here, elsewhere such as Ho Chi Minh City, where the main port is and other big cities in the world, lockdown is still in force and is preventing trading activities from resumption," a Central Highlands based trader said.
"All of us traders and farmers want trade to resume but the virus is still spreading globally and is disrupting beans shipments," he added.
Vietnam, the world's top robusta producer, exported 169,981 tonnes or 2.8 million 60-kg bags of coffee, in March, down 2.2% from February, customs data showed.
July robusta coffee settled up $14, or 1%, at $1,206 per tonne on Wednesday.
Meanwhile, a trader in Indonesia's Lampung province on Sumatra island said robusta beans are being offered with around $250 premium to July contract, unchanged from last week. While a second trader said premium fell to $270 for May through July contracts, compared to $300-$350 premium last week.
Both traders said new supply are starting to come in this week, but activities remain light.
One of the traders said coronavirus spread is also affecting consumption of coffee.
"Many cafes are not operating due to the virus," the trader said.
(Reporting by Phuong Nguyen in Hanoi and Mas Alina Arifin in Bandar Lampung; Editing by Rashmi Aich)
