Rising domestic coffee prices have encouraged Vietnamese farmers to sell more beans, while extended rainfall hurt current crop in the world's top robusta producer, traders said on Tuesday. Prolonged rain in Vietnam's Central Highlands is expected to hurt the country's coffee supply further, disrupting the harvest and outdoor drying season and potentially reducing the beans quality, traders said.
"Shipments before December 31 may face delays foreign (trading) firms have foreseen this situation so they have stocks ready for delivery," said a trader at a foreign firm in Ho Chi Minh City, estimating the Central Highlands harvest is 70 percent completed.
Domestic market has been active following recent gains in global coffee prices, with farmers eager to sell beans and export traders buying to replace their recent shipments, said another Ho Chi Minh City-based trader.
The March contract has risen 5.4 percent so far this month, hitting $2,129 per tonne on Monday, the highest since November 17. Vietnam's local prices reached 44,900-45,400 dong ($1.97-$1.99) per kg on Tuesday, compared to 43,000-43,800 dong a weak ago. But the international trading market is quiet as foreign importers wait for prices to fall and as demand drops ahead of the Christmas and New Year holiday, with less people drinking coffee at work, the second trader said. Traders quoted robusta grade 2, 5 pct black and broken at $50-$80/tonne discounts to the ICE March contract, widening from last week as export and import offers could not meet.