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Vietnamese coffee trade thin on higher pricesMonday, March 30, 2015 > 11:24:23
Vietnam's coffee market saw dull trading as high domestic prices sent exporters' offers beyond foreign buyers reach, traders said on Tuesday. The traders expect the country's shipment in March to fall. The dry weather peaking in the world's top robusta producer also attracted attention, but traders and an analyst said the dry conditions appeared normal at this time of the year.
"There are dry areas, and there are also areas with humidity in the region, these are normal conditions," said independent analyst Nguyen Quang Binh.
May robusta contract ended up 1 percent at $1,838 a tonne on Monday, boosted partly by concerns about dry weather in Vietnam.
Exporters kept unchanged in the past week their indicative offers of Vietnamese robusta beans at premiums of $50-$60 a tonne to ICE July contract, which ended up 1 percent at $1,864 a tonne on Monday.
Foreigners' bids were at discounts of $40-$50 a tonne.
"The market has been very quiet, with sellers and buyers failing to meet each others, while domestic prices are high," said Phan Hung Anh, deputy director of Anh Minh Co, a major private export firm in Daklak, Vietnam's top growing province.
Robusta edged up to 38,800-39,600 dong ($1.80-$1.84) per kg on Tuesday in Daklak, tracking gains on London robusta futures market, from 37,000-38,200 dong a week ago.
Vietnam exported nearly 63,000 tonnes of coffee in the first half of March, down 54 percent from the same period in 2014, Vietnam Customs data showed, suggesting the full-month shipment will be below that in March 2014.
Dryness and water shortages will affect several central provinces and the Central Highlands coffee belt by the end of March, the national weather centre said in a report.
The region, with 570,000 hectares (1.4 million acres) of coffee in five provinces, produces 80 percent of Vietnam's coffee output.
Nearly 4,500 hectares of coffee have been affected by dryness, while another 700 hectares in Lam Dong province have died from frost, based on reports from provincial agricultural departments.
The dryness is expected to last until mid-May or even early June, a state forecaster said last Friday.