By Phuong Nguyen
HANOI (Reuters) – Vietnam prices fell sharply this week following a drop in global prices, traders said on Thursday.
Farmers in the Central Highlands, Vietnam’s largest coffee-growing area, were selling beans for 94,000 to 97,000 dong ($3.74 to $3.81) per kg, versus last week’s range of 132,500 to 133,200 dong.
Trading on the ICE exchange in London fell 7.2% compared to last week.
“Prices have fallen significantly since the end of last week following a sharp drop at the London terminal as long position holders liquidated their positions,” said a coffee belt trader.
Vietnam’s coffee plants are bearing small fruits, but traders said it is too early to make an accurate forecast of 2024/25 production.
“The rains have increased in the region in recent days, but we still have to wait until the end of this month to get an idea of the next harvest,” said the trader.
Traders offered coffee at a premium of $500 to $600 per ton over London stock prices, down from a premium of around $1,000 recently.
(Reporting by Phuong Nguyen)
