HANOI, April 16 (Reuters) – Premiums of Vietnamese coffee to London futures widened this week to between $10 and $50 a tonne as domestic prices remained high while thin demand kept trading sluggish, traders said on Tuesday.
Robusta futures hit a five-month peak in March but have lost ground as a result of a large crop in top producer Brazil and a broader sell-off in commodities as concerns mount about the pace of recovery in the global economy. SOF/L
London’s May robusta contract LRCK3 has shed nearly 9 percent from the $2,216 a tonne it hit on March 14, the highest level for the benchmark since October 2012. (Full Story)
Vietnamese robusta traded in a wider range of between 42,500-43,800 dong ($2.03-$2.1) per kg on Tuesday, against 42,900-43,500 dong a week ago, tracking a drop in London the previous day. (Full Story)
Traders said coffee prices may fall further after crude oil and gold faced steep losses. (Full Story)
“It’s been difficult these days to trade, as domestic prices stay above export prices,” said a trader at a European firm in Ho Chi Minh City.
Domestic prices free-on-board (FOB) for robusta grade 2, 5 percent black and broken beans were $2,083-$2,145 a tonne, or $25-$87 a tonne above Liffe’s July contract.
Exporters were offering to sell the beans at premiums of $30-$50 a tonne to the July contract and several deals have been sealed at a premium of $10 a tonne, traders said.
“The price of $10 a tonne came from the exporter who sold stock built up a while ago,” a second trader said.
Vietnamese coffee prices are higher compared to the $2,060-$2,080 for a tonne cost of Indonesia’s fresher robusta beans grade 4, 80 defects. COFFEE/ASIA1
The harvest in Vietnam ended in December and is currently at its peak in Indonesia.
Vietnam’s coffee exports last month jumped 57.3 percent from February to 157,900 tonnes, or 2.63 million bags, Vietnam’s customs department said on Tuesday, slightly above market expectations of between 130,000-150,000 tonnes. (Full Story) (Full Story)
The March shipment brought Vietnam’s coffee export volume between October 2012 and last month, the first half of the 2012/2013 crop year to 864,000 tonnes, or 14.4 million 60-kg bags, up 13 percent from a year ago, based on government data.
Vietnam’s southern region, including the Central Highlands coffee belt, was likely to see scattered showers between now and the end of April before the rainy season starts in earnest in May, the state weather forecasters said.
More rain will help improve coffee flowers for the next 2013/2014 crop after serious water shortages in March.
