Feb 8, 2012

Vietnam - Vietnam commodity prices fall in January



Prices of many kinds of agricultural products, including coffee, pepper and cashew, have been falling over the past month and are expected to drop further in the coming time due to uncertainties in the world market.

Future pepper prices on the world market have dropped to US$5,700-$5,900 a tonne from $7,000-$8,000 a tonne in the early fourth quarter last year.

Vietnam's pepper export price also fell by $400 per tonne last month.

Domestic pepper prices dropped to 100,000 dong a kilo compared to the peak of 155,000 dong a kilo last year.

Vietnam exported 4,000 tonnes of pepper last month, earning $30 million, a reduction of 15.7 per cent in volume.

However, value increased by 29.1 per cent because pepper prices last month were higher than last January although prices were much lower than those in the latter months of last year.

According to the agricultural sector, pepper output this year may fall up to one-third compared to last year, due to unfavourable weather and diseases. The volume of pepper exports are expected to fall.

Similarly, coffee prices have edged down after the Lunar New Year by 200,000-300,000 dong, according to the Vietnam Coffee and Cocoa Association.

On January 31, a tonne of coffee was priced at 37.8 million dong ($1,800) in Dak Lak Province, 37.6 million dong ($1,790) in Gia Lai and 37.7 million dong ($1,795) in Lam Dong Province.

The price has continued to drop on February 2 and 3 to around 36.7-36.9 million dong per tonne on average.

In London, Robusta coffee futures for March delivery dropped by $22 a tonne to $1,843. Viet Nam exported an estimated 170,000 tonnes of coffee worth $350 million last month, a reduction of 20.9 per cent in volume and 15.3 per cent in value over the same period last year, according to the Ministry of Agriculture and Rural Development.

Like pepper, coffee output is expected to fall this year due to unfavourable weather and the high number of old coffee trees.

The situation is also the same in the cashew and rubber industries, with prices falling significantly.

The ministry said export turnover from agricultural, forestry and fisheries products last month went down by 16.3 per cent over the same period last year to about $1.8 billion.

Of that amount, exports of key agricultural products fell by 19 per cent.

Vietnam News



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