Coffee Futures Prices - Will harvest of the new Vietnam Coffee crop : The harvest of the new Vietnam crop is picking up in volume, but has yet to have any marked impact upon internal market selling activity, as there remains a degree of price resistance in play in reaction to the still relatively soft nature of the reference prices of the London market. Thus for the present it remains a waiting game on the part of the consumer market industries, who continue to slowly buy at premium differentials only such robusta coffees that are deemed necessary to cover short term requirements.
The big question is with the weight of carryover stocks into the new crop as to when pressure might build up upon farmers and internal traders to look to liquidate past crop stocks and to start to cash in new crop coffee stocks, which is now starting to look to be something that will only start to take place in the New Year and ahead of the Tet New Year holidays, which come into play early in February next year. Unless of course there might be reason for the London market to attract support and significantly added value, but for the present there seems to be little sign of this occurring.
Meanwhile in terms of added value for Vietnam coffees and within an article in the Vietnam Economic Times, it is reported that the Vietnam Coffee and Cocoa Association have forecast that the country is due to see exports of value added soluble coffees to have risen by 25% during this year, with an estimated 67,500 metric tons of soluble coffees due to be exported during the year. One might suggest that the countries soluble coffee factories shall continue to aggressively market these processed coffees and that one might expect the volumes of such exports to continue in the coming year, with perhaps even some increase in the volumes exported.
Vietnam aside there was little in the way of fundamental news coming to the markets yesterday, but with producer selling volumes quiet and seemingly a steady stance being taken by the funds towards the coffee markets, it was a day of mostly thin and lacklustre trade. To see the markets setting something of an improved trading range, but perhaps cautious over the prospects of catch up producer selling that might come into play against any further gains in value.
The big question is with the weight of carryover stocks into the new crop as to when pressure might build up upon farmers and internal traders to look to liquidate past crop stocks and to start to cash in new crop coffee stocks, which is now starting to look to be something that will only start to take place in the New Year and ahead of the Tet New Year holidays, which come into play early in February next year. Unless of course there might be reason for the London market to attract support and significantly added value, but for the present there seems to be little sign of this occurring.
Meanwhile in terms of added value for Vietnam coffees and within an article in the Vietnam Economic Times, it is reported that the Vietnam Coffee and Cocoa Association have forecast that the country is due to see exports of value added soluble coffees to have risen by 25% during this year, with an estimated 67,500 metric tons of soluble coffees due to be exported during the year. One might suggest that the countries soluble coffee factories shall continue to aggressively market these processed coffees and that one might expect the volumes of such exports to continue in the coming year, with perhaps even some increase in the volumes exported.
Vietnam aside there was little in the way of fundamental news coming to the markets yesterday, but with producer selling volumes quiet and seemingly a steady stance being taken by the funds towards the coffee markets, it was a day of mostly thin and lacklustre trade. To see the markets setting something of an improved trading range, but perhaps cautious over the prospects of catch up producer selling that might come into play against any further gains in value.
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