Asia Coffee: Vietnam prices drop as Russia-Ukraine conflict hits global markets
Asia Coffee: Vietnam prices drop as Russia-Ukraine conflict hits global markets
Vietnam's domestic coffee prices dipped on Thursday, following a tumble in London prices amid disruptions in supply chain and payment methods and soaring oil prices resulting from the ongoing Russia-Ukraine conflict, traders said.
The London ICE May contract had shed 6.8% or $149 over the past week as of Wednesday's close, settling at $2,030 per tonne, the lowest level since September last year, Refinitiv Eikon data showed.
"The fall in global prices is partly because of the Russia-Ukraine crisis," an exporter based in the coffee belt said.
"I have big clients in Russia. With the current sanctions imposed on the country, I'm wondering if my ready-to-ship beans can be delivered and how my clients can make payment."
Farmers in the Central Highlands, Vietnam's largest coffee-growing area, sold coffee at 38,900-41,000 dong ($1.70-$1.80) per kg, down from last week's 40,600-41,800 dong range.
Another trader said that some of his shipments were still congested at the port and could not be delivered yet, adding, shipping rates remained "sky high".
Traders in Vietnam offered 5% black and broken-grade 2 robusta at a discount of $325 per tonne to the July contract, compared with $330-$340 discount range last week.
Vietnam's coffee exports in the first two months of the year likely rose 3.4% from a year earlier to 293,000 tonnes. Coffee shipments in February are estimated at 130,000 tonnes, valued at $304 million, official data showed.
The Indonesian market is closed on Thursday for a holiday. Beans were offered at $170 discount to the March and April contracts and $200 discount to the May contract last week.
