2016 Output Vietnamese Coffee Crop

Coffee Futures News - 2016 Output Vietnamese Coffee Crop : Trading in Vietnamese coffee has not picked up as weak global markets pulled down prices in the world's top robusta producer, curbing sellers' willingness to unload beans, traders said on Tuesday. An upward revision of Vietnam's 2015/2016 coffee output by a US Department of Agriculture attache in Vietnam has also put downward pressure on prices, traders said.

Foreign firms, which have been slow in buying Vietnamese beans partly because of the country's huge carryover stocks, will not rush for new purchases given a larger crop is arriving, traders said. Vietnam's 2015/2016 coffee output is revised up by 2.4 percent from a previous forecast to 29.3 million bags due to adequate water supply, a US Department of Agriculture attache in Vietnam said.

The revised output is also up from 27.4 million bags in the previous 2014/2015 season, the attache said in a report. "The forecast will slow buyers' purchase," a trader at a foreign firm in Ho Chi Minh City said. The report did not say when Vietnam's coffee exports could quicken but it forecast the country's coffee exports in the current season ending September 2016 will jump 30 percent from a year ago to 28.72 million bags.

"This crop's output may not be lower than last year but it could not be higher," said Phan Hung Anh, deputy director of export firm Anh Minh, based in the largest growing province of Daklak. ICE January robusta futures settled down 2.1 percent to $1,539 per tonne on Monday, pressured by much-needed rainfall in Brazil's robusta region. Vietnamese robusta fell around 1 percent in the past week to 34,200-34,500 dong ($1.52-$1.53) per kg on Tuesday in Daklak.

The beans have lost nearly 4 percent so far in the 2015/2016 season that started on October 1, compared with a gain of nearly 5 percent in the same period a year ago, based on Reuters data. Exporters were seeking to sell Vietnamese robusta grade 2, 5 percent black and broken at premiums of $20-$40 a tonne to the January contract, unchanged from a week ago. Bids were at par with the January contract or at a premium of $30 a tonne to ICE March, depending on buyers' demand, traders said.

"Overall 25-30 percent of the crop has been harvested," Hung Anh said. Fresh beans will pick up in December when the harvest comes into full swing, Hung Anh said.

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