Vietnam coffee prices down as rains hinder commodity from being harvested
Supply of coffee from Vietnam has been hampered as rain continues to keep farmers from harvesting their crop. Rains in the Central Highlands ares has specifically hindered the harvest.
Although the coffee harvesting began about two weeks earlier than normal, starting on October 20, farmers haven't been able get to their fields to start the bean-drying process. The cloudy weather has also kept land from drying quicker as well.
Even so, another factor is the price of coffee, which has pressured prices downward, and Vietnamese farmers are probably in no hurry to get back in the fields either, hoping the demand will drive prices up more.
"This demand has put pressure on Vietnamese prices but given the supply of fresh beans remains thin, the market has not stirred much," said a trader in Ho Chi Minh City, Vietnam’s main coffee trading market, in reference to shipment from Indonesia being delayed after the sharp drop in prices. About 30,000 tons of coffee beans could be defaulted on, driving buyers to the Vietnamese market.
Bids for the week have come in at between $140 to $190 a ton, while contracts for January ranged from $160 to $175.
Vietnam is only behind Brazil worldwide in producing coffee beans.
Hopefully the commodity problems will be solved so farmers can have a successful year.
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