HO CHI MINH CITY – Coffee exports from Vietnam are likely to surge to 100,000-150,000 tonnes in December from an estimated 80,000 tonnes last month as the rain-delayed harvest picks up pace, according to trade sources.
The December shipments will be down from the 162,500 tonnes in the same month last year, after November exports came in 34% below the previous year.
“Buying demand is expected to pick up when more fresh beans arrive, but at the moment sales are slow,” a trader at a European trading house in Ho Chi Minh City said, adding that farmers were waiting for higher prices.
Tracking London gains, Vietnamese robusta beans edged up to 33,300-33,500 dong ($1.58-$1.59) per kg on Tuesday in Daklak, Vietnam”s largest growing province, from 33,200 dong on Monday and 31,400-31,700 dong a week ago.
Traders estimated around half of the 2013/2014 crop has been picked, with up to a third of the total output now ready for export.
They see the 2013/2014 crop at 29 million bags, from 25 million bags in the previous season that ended in September.
Exporters were seeking to sell robusta grade 2, 5 percent black and broken in a range from par to $40 over London”s March contract, while bids stood at discounts of up to $30 per tonne.
Last Tuesday the premiums stood at $10-$20 a tonne to the January contract.
“Most demand for December has been covered, only a few people are short, but buying can pick up when more fresh beans are available on the market,” another trader said.
Source: [via]
