Domestic coffee prices in Vietnam, the world's second-largest producer after Brazil, rose to a new year high of 19,700 dong ($1.23) per kilogram on Tuesday, but thin stocks have prevented sales from jumping, traders said.
Vietnam's year high price came after gains on London's robusta futures market on Monday when the benchmark September contract jumped more than 4 percent to touch $1,352 a tonne before easing to end up 1.6 percent at $1,317.
"They now hold back, having seen the rising price, so exporters could not buy locally," said a trader in Ho Chi Minh City, referring to farmers and speculators in the world's largest exporter of robusta, used for instant coffee.
Early last month, robusta beans hit a year-high of 19,100 dong per kg in Vietnam's Central Highlands coffee belt, prompting exporters to sell remaining stocks. Vietnam ended its coffee harvest in January and the next harvesting would start from mid-October at the earliest.