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Asia Coffee-Prices pick up in Vietnam on global cues, tight supplies

Asia Coffee-Prices pick up in Vietnam on global cues, tight supplies

Thursday, July 29, 2021, 19:49 GMT+7
Asia Coffee-Prices pick up in Vietnam on global cues, tight supplies
A file photo shows a man waiting for coffee to brew at a cafe in Hanoi, Vietnam. Photo: Reuters

Vietnam's domestic coffee prices edged up on Thursday on upbeat global prices and limited supplies at the end of the harvest season, traders said.

Farmers in the Central Highlands, Vietnam's largest coffee-growing area, sold coffee COFVN-DAK at 36,900-38,000 dong ($1.61-$1.65) per kg, up from the 36,500-37,200 dong range a week ago.

London prices LRCc2 on Wednesday settled up $18, or 1%, at $1,943 per tonne, its highest level since 2018, Refinitiv Eikon data showed.

"Adverse weather conditions in Brazil was a push for global prices. Domestic prices inched up this week following a skyrocket in London," said a trader based in the coffee belt.

"However, farmers have almost no beans left to sell, while demand is low due to the COVID-19 restrictions and as the container crunch is still hampering exports."

Vietnam's coffee exports in the first seven months of the year are expected to register a drop of 9.3% from a year earlier to 953,000 tonnes, official data showed.

Traders in Vietnam offered 5% black and broken-grade 2 robusta COFVN-G25-SAI at a discount of $230 per tonne to the September contract, compared with the $80-$90 discounts last week.

Meanwhile, discounts on Indonesia's Sumatran robusta widened this week as supplies remained abundant amid harvests while the worsening coronavirus outbreak dampened demand, traders said.

In Lampung province, one trader offered a $120 discount to the November contract, compared with the $50-$60 discount range last week.

Another trader offered a $100 discount to the September through November contracts, unchanged from last week.

"It's pretty similar with last week. There are plenty of beans, but not that many buyers because of the COVID-19 outbreak," the second trader said.

($1 = 22,965 dong)

Reuters

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