Domestic coffee prices hit all-time high at VND49.2Mln/ton

The domestic coffee prices hit all-time high at VND49,200/kg in Vietnam’s Central Highland provinces , the online newspaper CafeF reported on March 10,citing local farmers.

The prices of domestic coffee have increased by VND3.3 million in only 2 days of March 9 and 10.

Vietnam has biggest Robusta coffee output in the world. Therefore, the domestic coffee prices are likely to be affected by the world price changes.

The coffee prices on the London International Financial Futures and Options Exchange also rose sharply on March 8 and 9, totaling a $154 per ton or 6% to $2,557 per ton for forward contract for delivery on May due to shortage of coffee.

The prices of Robusta coffee (FOB prices at Ho Chi Minh City Port) also set a new record high at $2,450 per ton. Therefore, local exporters will benefit from both higher selling prices of coffee and higher USD/VND exchange rate.

In March, Vietnam coffee export is expected to rise by 22% on-month while the inventory has reached 345,000 tons of coffee.

The country’s coffee output is forecast to fall 20% to 1.1 billion ton in the 2010-2011 crop, Vicofa predicted. – Stoxplus.com

Tags: Vietnam Coffee, Vietnam coffee prices