Vietnamese Farmers Hold Onto Coffee Stocks Amid Low Prices
From: finance.yahoo.com
HANOI/BANDAR LAMPUNG, Indonesia (Reuters) – Traders and exporters in Vietnam have taken a step back from purchasing low-priced coffee beans from local farmers, while inventories begin to decline.
“There are very few export quotations as it’s been difficult to buy on domestic markets,” a trader based in the coffee belt of Vietnam said.
Farmers in the Central Highlands, Vietnam’s largest coffee-growing area, sold coffee at 30,500-31,000 dong ($1.31-$1.33) per kg, narrowing from the range of 30,800-31,000 dong last week.
“Farmers are complaining prices are exceptionally low,” the trader said. “They are asking for at least 33,000 dong per kg, equivalent to the production cost.”
Due to recent lack of rainfall, traders said the 2019/20 crop would likely face drought, which could lead to a dip in the production. Moreover, abundant supply of robusta beans from Brazil would also drag Vietnam’s prices lower.
