Trade in Vietnamese robusta coffee slowed this week on thin foreign demand and weakened global prices, while the domestic market changed little following last week's rise. Vietnamese prices rose to between 41,000 and 41,200 dong per kg on last Thursday, the highest in nearly seven weeks, shortly before London's September contract hit a seven-week high of $2,085.
The September contract has since weakened around 2 percent to $2,038 a tonne on Monday, pulling down robusta in the world's top producer to 40,400-40,600 dong ($1.90-$1.91) on Tuesday, down nearly 1.5 percent. "Buyers are not very much into Vietnamese coffee now, as roasters may have covered their needs," a trader in Ho Chi Minh City said. Some exporters are finding it difficult to buy on domestic markets, with Vietnam prices holding more stable than export prices, said another trader in Ho Chi Minh City.
Vietnamese exporters who failed to buy earlier on domestic markets could still source beans from several foreign companies that have established storage facilities in Ho Chi Minh City for loading, traders said. The traders estimated the current stocks in the city, Vietnam's largest coffee trading market, at between 200,000 and 240,000 tonnes, down from around 300,000 tonnes at the end of June.
Vietnam could export 90,000-120,000 tonnes (1.5 million to 2 million bags) of coffee in July, against an estimated 110,000 tonnes shipped in June, traders have said. "Higher prices in London will surely stimulate farmers to sell more of their stocks," the first trader said. Exporters quoted robusta grade 2, 5 percent black and broken beans at discounts ranging between $10-$30 a tonne, while foreign buyers' bids stood at discounts of $40-$50 a tonne.
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