A slight recovery in Vietnamese coffee prices from a fall late last week failed to boost trading as buying-demand was thin while stocks held at trading firms were high, traders said on Tuesday. Vietnam, the world's largest robusta coffee producer, will start its 2014/2015 crop year in October with a harvest, and trading companies are trying to find buyers to clear out stocks before new beans arrive, traders said.
"But buying-demand is thin, so trading is not active," said a trader in Ho Chi Minh City. Vietnamese exporters and foreign firms which have Vietnam-based storage facilities may still be keeping at least 200,000 tonnes of coffee in Ho Chi Minh City, or more than 10 percent of the 2013/2014 harvest, based on trader estimates. Wealthier farmer families, domestic firms and buying agents may still have another 100,000 tonnes in the Central Highlands coffee belt, traders said. Domestic stocks are similar to those in early July 2013, according to trader estimates.
Robusta rose to 39,500-40,000 dong ($1.86-$1.89) per kg on Tuesday in Daklak, the country's top growing province, tracking gains on London's futures market, where Liffe September contract ended up $26, or 1.3 percent, at $2,023 a tonne on Monday. The beans fell to 39,500 dong per kg last Saturday from 40,400-40,600 dong on July 8 after losses on global futures markets on Friday, when arabica tumbled to a near five-month low and robusta also ended lower. On Tuesday, Vietnamese grade 2, 5 percent black and broken were quoted at discounts of $40-$50 a tonne to London's September contract, widening from discounts of $10-$30 per tonne a week ago.
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