Coffee prices in Vietnam further declined on Tuesday, prompting farmers to hold on to their bean stock and resulting in thin transactions, traders said. "We do not offer prices to foreign buyers today, because we even can not buy beans from farmers recently," said a trader in Buon Ma Thuot, the capital of the top coffee-growing province of Dak Lak.
"Bean holders are in no rush to sell, particularly when prices fall." Buyers are reluctant to buy the beans because of the high premiums, so hardly any transactions are made, said another trader in Ho Chi Minh City. Farmers have sold most of their beans since the peak of the 2012/2013 crop last November, and only keep a small stock until the new crop late this year.
Robusta eased to 37,400-38,000 dong ($1.78-$1.8) per kg on Tuesday in Daklak, from 37,000-38,500 dong a week ago. Liffe September robusta coffee closed up 1 percent at $1,761 per tonne on Monday. The contract fell to $1,704 on June 14, the lowest level for the second month since October 2010. Premiums of Vietnamese coffee to London's September narrowed to $70-$100 a tonne, from $90-$100 last Tuesday, suggesting robusta grade 2, 5 percent black and broken at $1,661-$1,691, free-on-board basis.
Comments
Comments are closed.