Coffee price edges up as supply falls
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The price of Robusta coffee in the Central Highlands provinces rose by 500 VND per kilogramme to more than 50,000 VND on June 10.
The 500 VND hike – or 25 USD per tonne – was much lower than the price in the London terminal market, coffee buyers in HCM City said.
Exporters in Dak Lak Province offered Robusta grade 1 with 0.2 percent foreign matter, one of the top qualities in Vietnam, at 70 USD per tonne above the level on the London terminal market.
HCM City-based exporters said the FOB price of grade 2 with 5 percent black and broken and 1 percent foreign matter was around 50 USD per tonne below the terminal market price, 20-30 USD higher than last week.
Based on the closing price of the London terminal market on June 9, the FOB price for grade 2 with 5 percent black and broken was around 2,460 USD per tonne.
Central Highlands farmers were reluctant to sell due to tightened stocks.
Local sellers said there were not many buyers in the market, only some players with short positions in physical coffee.
Farmers said the coming harvest, which will start in October 2011 and last until September 2012, should be good due to good rains.
Traders and exporters estimate output to be above 1.1 million tonnes. Farmers also expect output to be a bit higher due to the higher productivity./.
