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Vietnam Coffee: trade slow on high domestic pricesThursday, January 15, 2015 > 10:14:45
Vietnam's coffee markets saw light trading this week as exporters were seeking to sell beans above London's futures due to high domestic prices, while foreign buyers were looking for cheaper prices, traders said on Tuesday. After most of harvesting ended in December, farmers have now begun to sell slowly, but many were still waiting for higher prices, traders said. Vietnam, the world's top robusta producer, produces nearly a fifth of the world's total.
"The beans are held by speculators and exporters who need coffee for loading will have to buy at high prices now," said a trader in Buon Ma Thuot, the capital of Daklak, Vietnam's largest growing province. Robusta stood at 40,300-40,600 dong ($1.89-$1.90) per kg in Daklak on Tuesday, against 40,500 dong on Monday and up from 39,800-40,000 dong a week ago. Vietnam prices closely track London's robusta futures market where the March contract ended up 0.5 percent at $1,973 per tonne on Monday. Robusta futures could face a steep fall when the market opens on Tuesday, independent analyst Nguyen Quang Binh said.
Exporters sought to sell Vietnamese beans grade 2, 5 percent black and broken at $20/tonne below ICE May contract, while bids were at discounts of $30-$40/tonne to the March contract, or $1,930-$1,980 on free-on-board Saigon Port basis. Central Highlands coffee farmers have begun watering trees in some areas to protect flowers that emerged last month, or about six weeks before the usual February start of the watering process, traders said.