Vietnam Coffee: Prices Hit Record High, Farmers Expect Rise to Continue
Hanoi. Vietnam's domestic coffee prices jumped to a record peak, following London futures higher, while the market slowed as farmers held off from sales in expectation of better prices, traders said on Tuesday (17/01).
Coffee prices in Daklak, the country's largest robusta-growing province, climbed to a record 46,300-46,500 dong ($2.05-$2.06) per kilogram on Tuesday, from 45,000-45,500 dong a week ago.
"Farmers are not too eager to sell as they expect prices to climb further," said independent analyst Nguyen Quang Binh, adding that foreign importers are also reluctant to buy on concerns over fluctuating prices ahead of Tet holidays.
Tet, the Lunar New Year, is Vietnam's biggest festival and lasts from Jan. 26 to Feb. 1 this year.
Exporters have switched to quote on the May contract , which has risen by about 3 percent over the past week and stood at $2,235 a ton on Monday.
Discounts on 5 pct black and broken grade 2 robusta in Vietnam widened to $80-$85 a ton below the ICE May contract, from $70 last Tuesday.
Vietnam, the world's top robusta producer, exported 1.78 million tonnes (29.7 million 60 kilogram bags) of coffee in 2016, up 32.8 percent from a year earlier, customs data showed.
The value of coffee exports last year rose 24.9 percent to $3.34 billion, with December coffee exports increasing 29 percent from the previous month to 148,000 tonnes.
Reuters
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