Asia Coffee Vietnam’s domestic prices rise slightly on the back of global price recovery

HANOI/BANDAR LAMPUNG, March 10 (Reuters) – Vietnamese domestic coffee prices rose slightly on Thursday from a week earlier, following a rally in Robusta futures on ICE as exporters halted shipments to Russia due to payment and logistical issues related to the Ukrainian conflict.

The London ICE May contract settled at $23 or 1% at $2,117 a tonne on Wednesday after hitting a 6-month low last week.

Farmers in the Central Highlands, Vietnam’s largest coffee-growing region, sold coffee for between 39,200 and 41,300 dong ($1.72-$1.81) per kg, higher than the 38 range. 900 to 41,000 dong last week.

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Traders and exporters said most shipping companies had suspended delivery services to Russia, while Russian-based customers were struggling to make payments and send documents and invoices through banks.

“We have halted all shipments to Russia and are in active talks to cancel some sealed orders with customers based in Russia previously,” said a Ho Chi Minh City-based exporter.

“The ruble is collapsing, shipping rates are rising, disputes are escalating and our profit is close to zero,” the exporter said.

A trader based in the coffee belt has also raised concerns about rising fertilizer prices resulting from sanctions against Russia.

“The pandemic has pushed fertilizer prices 2 to 2.5 times higher, now with tight supplies, production costs will continue to rise.”

Vietnamese traders were offering 5% black and broken grade 2 robusta at a discount of $300 a ton from the July contract, down from $325 last week.

In Indonesia’s Lampung province, a trader offered a $200 discount on the March contract, unchanged from two weeks ago.

Another trader said the beans were offered at a discount of $100 to $110 on contracts from April to May, compared to $170 discount on contracts from March to April before the holiday.

“We may have a mini-harvest in April, so those who still have beans release old stocks,” said one of the traders.

($1 = 22,840 VND)

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Reporting by Phuong Nguyen in Hanoi and Mas Alina Arifin in Bandar Lampung; edited by Uttaresh.V

Our standards: The Thomson Reuters Trust Principles.

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