| Vietnam Coffee-Low prices keep cap on trade |
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HANOI, Jan 20 (Reuters) - Coffee trade in Vietnam slowed during the last week, before the country marks its most important festival this weekend with growers unwilling to sell while prices stay low, traders said on Tuesday.
"Farmers now mainly keep coffee in stock and only sell a little to get quick cash over Tet," a Vietnamese trader said by telephone from the
But with an average export price last year rising nearly 30 percent to $2,012 a tonne, free-on-board basis, farmers were not under financial pressure to sell to cover expenses before Tet, or the Lunar New Year festival, from Jan. 24 to 29 this year.
Prices for a kilogram of robusta beans were quoted at 25,300-25,700 dong ($1.49-$1.51) in the
Traders have said Vietnamese farmers could accelerate sales only if domestic prices reached 30,000 dong per kg, a level last seen in late September before the harvest started.
Discounts for robusta grade 2, 5 percent black and broken were quoted at $140 a tonne to
There were no data yet for coffee exports so far this month and the government's statistics agency is expected to release the figure only in early February because the week-long holiday ends on Jan. 29.
But traders said January's shipments were much lower than the figure a year ago. December coffee exports rose to an estimated 130,000 tonnes in 2008 from 110,000 tonnes a year earlier, government statistics showed.
The country's coffee crop year lasts from October to September, starting with a four-month harvest.
After Tet, domestic sales often rise because farmers need cash to buy fertiliser and fuel for their next crop cycle production between February and early May. ($1=16,973 dong) By Ho Binh Minh |