Coffee price edges up as supply falls

June 13, 2011 | 13:42

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The price of Robusta coffee in the Central Highlands provinces rose by VND500 per kilogramme to more than VND50,000 on June 10.

illustration photo

The VND500 VND – or $25 per tonne – was much lower than the price in the London terminal market, coffee buyers in Ho Chi Minh City said.

Exporters in Dak Lak Province offered Robusta grade 1at $70 per tonne above the level on the London terminal market.

Ho Chi Minh City-based exporters said the FOB price of grade 2 with 5 per cent black and broken and 1 per cent foreign matter was around $50 per tonne below the terminal market price, $20-30 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 per cent black and broken was around $2,460 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.

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