Domestic coffee prices drop VND4,500/Kg

The domestic coffee prices fell by VND4,500 to VND44,700/kg in the recent five days after hitting all-time high at VND49,200/kg in Vietnam’s Central Highland provinces

The domestic coffee prices fell by VND4,500 to VND44,700/kg in the recent five days after hitting all-time high at VND49,200/kg in Vietnam’s Central Highland provinces, the online newspaper DVT reported on March 15,citing local farmers.

The drop was attributed that the world prices fell due to worries on slower economic growth after earthquake and tsunami in Japan. Meanwhile, local coffee agencies also did not accept to purchase coffee at the high level.

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 declined sharply by nearly $100/ton in five straight days to $2,390 per ton for forward contract for delivery on May due to profit taking activities.

The prices of Robusta coffee (FOB prices at Ho Chi Minh City Port) also decreased to $2,225 per ton.

The International Coffee Organization (ICO) said that the coffee consumption in the developing country is predicted to continue uptrend momentum while the international coffee inventory will stand low that keeps the coffee price stable.

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