Vietnam’s coffee price surpasses London price

Robusta coffee of Vietnam has for the first time since May 2010 been higher than the price in London market because of scarcity.

In details, Vietnam’s price of 2 and 5% broken coffee for September delivery was $20-60 per ton higher than London level. One week ago, the bean coffee price had been $20 lower than that of London market. But traders said the trading volume with high prices was modest, citing Reuters.

Reuters quoted a trader that his trading company purchased Vietnamese coffee been at a price higher $20 per ton than London price on June 7, particularly at $2,479 per ton.

The country’s coffee export last month was estimated to grow 10.6% year on year to 110,000 tons or 1.83 million bags, beyond the market expectation.

But, traders expected June coffee export might fall to 65,000-80,000 tons (1.08 million-1.33 million bags) because of limited reserve.

Vietnam became the largest robusta exporter accounting for 14% of total global coffee volume. In the coming harvesting crop 2011-2012 (ending in September), the output may reach a record of 22-24 million bags against 20-22 million bags of the previous crop.

The market, according to analysts, will suffer pressure of higher prices due to limited supply from both Vietnam and the second largest robusta exporter Indonesia and Brazil. – Vietbiz24

Tags: Vietnam Coffee, Vietnam coffee prices