Domestic coffee prices settle at VND43,200/Kg

The domestic coffee prices hit the highest level in 4 years of VND43,200/kg in Vietnam’s Central Highland provinces, increasing VND1,500/kg from the last week

The domestic coffee prices hit the highest level in 4 years of VND43,200/kg in Vietnam’s Central Highland provinces, increasing VND1,500/kg from the last week, the online newspaper DVT reported on February 21,citing local farmers.

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 increased by $31 per ton to $2,288 per ton for forward contract delivered on March.

The prices of Robusta coffee (FOB prices at Ho Chi Minh City Port) rose to $2,130 per ton at the exchange rate of VND20,833 per USD ,$50 higher than the last week. Therefore, local exporters will benefit from both higher selling prices of coffee and higher USD/VND exchange rate.

Earlier, the Vietnam Coffee and Cacao Association (Vicofa) attributed the coffee price hike to the increasing demand in the world market while heavy rain caused crop damage in Vietnam, the second biggest coffee exporter.

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