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Vietnam coffee exports slow but domestic sales strengthen
Domestic coffee sales in Vietnam strengthened in the past week as trading houses started stockpiling in anticipation of world prices rising because of a weak dollar and a supply shortfall this year, traders said.
Exports have been slow so far this month because domestic prices were higher than international prices due to the strong demand from local traders, they said.
"Local speculators loaded with cash are buying aggressively, betting on strong gains in global prices in the next few months thanks to the weakening dollar and an expected fall in coffee output this year," said a trader in Buon Ma Thuot, capital of the top coffee-growing province, Daklak.
On Monday, London January robusta coffee <LRCF0> ended up $4 at $1,348 a ton, deriving support from the weakness of the US currency and gains in other commodity markets.
Fresh beans from the current harvest were quoted at about VND24,600 per kg, or about $1,380 a ton, on Tuesday, $10 higher than quotations for outright export prices of $1,370 a ton, free on board, traders said.
Last week top exporter Vinacafe said it was facing an output drop of up to 40 percent on its farms, whose area makes up one-fifth of Vietnam's total coffee acreage.
Vietnam's coffee harvest started in late September but the process was briefly disrupted by rain. Farmers are now accelerating cherry picking and the harvest often reaches full swing by late November
thanhnien, reuters
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