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Friday, December 11, 1998

High prices, drizzle hits Vietnam coffee trade 

 
Hanoi, Dec 11: Vietnam's coffee trade has been sluggish this week because of high local prices and persistent drizzle that has affected supply in the top coffee producing province of Daklak, traders said on Friday.

"The weather is now dangerous for the coffee business," said a trader in the central highland province of Daklak.

"Farmers either do not have enough beans for sale or they are holding back because they don't need the cash very much."

He said drizzle had fallen in Daklak since the beginning of the week and had disrupted the drying process. Daklak accounts for 60 percent of the country's coffee crop.

The trader said farmers were expected to sell more beans before the lunar new year festival which falls in the middle of February.

Vietnam's robusta grade 2, five percent black and broken was quoted at $1,540-1,560 a tonne, FOB Saigon Port, unchanged from last week.

Liffe coffee futures ended mixed on Thursday with spot January weakening to $1,880 per tonne while March futures had added $15 to $1,740.

The trader in Daklak estimated between 50-60 percent of Vietnam's 1998/99 coffee crop had been harvested but added the rainy weather remained a big obstacle.

Harvesting of Vietnam's coffee crop started in October and should last until January.

An international coffee trader in Ho Chi Minh City said bean moisture was higher than normal but still acceptable and no mould had been found in any recent shipments.

Another trader said some shipments were delayed this week at Saigon Port as exporters failed to collect coffee beans.

A storm -- the seventh to hit Vietnam this year -- was off the country's southern tip on Thursday night and heavy rains were expected to strike coastal provinces over the next few days, local media reported on Friday.

Vietnam is one of the world's top exporters of robusta, widely used in the production of instant coffee.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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