Daklak Investment Export - Import Joint Stock Corporation - Vietnam Coffee-Sales slow on thin supply, stable prices

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Vietnam Coffee-Sales slow on thin supply, stable prices

By Nguyen Nhat Lam

HANOI , July 22 (Reuters) - Vietnam 's domestic coffee prices were stable in the past week but sales were slow due to rapidly dwindling supply, traders said on Tuesday.

Robusta beans were quoted around 35,500 dong ($2.15) per kg in Daklak , Vietnam 's largest coffee growing province, virtually unchanged from last week's level of 35,200-35,500 dong ($2.13-$2.15) per kg.

"The supply side is quite limited and what's left over is running out fast as most people have sold out. To purchase big volumes we will have to wait until the new harvest in October," a trader in Buon Ma Thuot, the capital of Daklak, said. "It will be quiet until then," he added.

Discounts to London were also quoted around $200 a tonne for robusta grade 2, 5 percent black and broken beans, little changed from last week, traders said.

The discounts meant Vietnamese robusta prices would be steady from last week at around $2,150 a tonne.

Indonesian Coffee Exporters Association said on Monday Indonesian roasters might buy 60,000 tonnes of Vietnamese coffee to fill a domestic shortfall in November when the main harvest there ends.

"If Indonesia demands 60,000 tonnes delivered all in November alone, it would have a positive impact on local prices but supply-wise, we should be able to meet their requirement," another trader in Buon Ma Thuot said.

Earlier this month, German analyst F.O. Licht said Vietnam would get 21.5 million 60-kg bags from its next harvest, due to start in October.

The next harvest would be 23 percent higher than this year's output of 17.5 million bags as estimated by both the U.S. Department of Agriculture and the International Coffee Organisation.

Traders have also forecast a bumper crop in Vietnam , thanks to enough water supply and higher prices this year, with 2008/2009 output expected to reach between 20.8 million and 22 million bags.

Coffee prices in Vietnam have risen about 30 percent in the past year. ($1=16,498 dong) (Editing by Ben Tan)

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