Coffee price edges up as supply falls

The fall came in line with the lower price at the close of London's Robusta futures market on the last trading day last week.

London's futures market for robusta coffee rose sharply early last week following rumours about frost in the southern part of Brazil, the biggest coffee producer in the world.

The forecasts later downgraded the intensity of the chilly weather there and led coffee prices to lose US$26 on futures markets of London for robusta on July 1, but up US$153 per tonne for the week.

The FOB (free on board) price of Vietnamese robusta coffee Grade 2, with 5 percent black and broken, was quoted at minus US$40 per tonne, discounted to the level of the trading month of the futures market, or about US$2,420 per tonne compared with the closing price of London's terminal market.

Vietnam, the world's second largest coffee producer and exporter behind Brazil, produces mainly robusta coffee, which is often used for blending.

During the first six months of this year, the country exported 913,000 tonnes of coffee beans, earning US$2 billion in turnover, according to the Ministry of Agriculture and Rural Development.