Asia coffee: Domestic prices jump in Vietnam as farmers delay selling
Asia coffee: Domestic prices jump in Vietnam as farmers delay selling
Vietnam's domestic coffee prices rose on Thursday, compared with last week, as supplies tightened after farmers refrained from selling the bean in hopes that prices would rise further, traders said.
Photo: Reuters |
Farmers in the Central Highlands, Vietnam's largest coffee-growing area, were selling beans COFVN-DAK for VND69,700-70,200 ($2.86-$2.89) per kg, up from last week's VND63,500-66,000.
"Domestic prices reached a record high this week but trade is not robust as farmers are not selling. Beans are scarce," said a trader based in the coffee belt.
According to the trader, prior to the harvest, some farmers made deals to sell new beans at VND58,000 per kg.
"Prices have risen significantly since, forcing some to delay deliveries of sealed contracts," the trader said, adding farmers had finished picking beans and were drying them.
March robusta coffee LRCc2 gained $73 to $2,870 in a week, as of Wednesday's close.
Another trader said the higher price this week was in line with the increase in the London terminal due to the disruption of shipping via the Suez Canal.
Traders offered 5-percent black and broken-grade 2 robusta COFVN-G25-SAI at a premium range of $60-$70 to the March contract, up from the $40-$60 premium range last week.
Another trader quoted a $160 premium to the January contract.
In Indonesia, Sumatra robusta coffee beans were offered at a $540-$550 premium this week to the January-February contract, unchanged from last week.
The price is adjusting to volatility in the London price terminal and to the depleted stockpile, one trader said.
($1 = VND24,245.0000)
