A customers on the balcony of a cafe in Hanoi, Vietnam. — AFP
HANOI (Reuters): Domestic coffee prices in Vietnam climbed this week as fresh supply from the new harvest is yet to pick up due to heavy rain in key growing areas over the past weeks that disrupted cherry picking, traders said on Thursday (Nov 16).
Farmers in the central highlands, Vietnam's largest coffee-growing area, were selling beans for 58,500-59,400 dong per kg, higher than last week's 57,200-58,600 dong.
"Negative news on weather in Vietnam contributed to the rise," said a trader based in the coffee belt.
The trader offered 5% black and broken-grade 2 robusta at the same price as London price to the January contract.
Another trader based in the same region quoted a discount range of US$40-50 per metric ton to the same contract.
"Beans are limited but farmers are releasing them bit by bit," the second trader said. "Clearly it's not a good harvest. Rains have disrupted all activities."
In Indonesia, Sumatra robusta coffee beans were offered at US$720 premium this week to the January-February contract, an increase of US$20 from last week.
One trader said that the higher prices were to adjust to the rise in London terminal, as well as an increase in the local price due to limited beans.
