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Vietnam Coffee-Sellers expect higher prices, trading slows - RTRS

 

   HANOI, Jan 31 (Reuters) - Coffee trading in Vietnam resumed at a slow pace after a break for the Tet new year festival, as weaker international markets prompted sellers to hold back supplies of beans in the expectation of higher prices later, traders said on Tuesday. 
    Farmers sold small volumes during the January 21-29national holiday, a trader in the top coffee growing province of Daklak said, but official trading only started on Monday. 
    "Farmers have no need to rush to sell the beans now. Many of them sold to pay back loans to banks and creditors and cover expenses before Tet already," he said. 
    Despite large stocks, farmers are not under pressure to sell beans as they don't need to pay for fertiliser for thenext crop until the early rainy season, which falls in April or early May in the Central Highlands, a trader in Ho Chi Minh City said.
    Farmers finished harvesting the 2011/12 crop early thismonth, and only a small volume of arabica beans are now under work. 
    For an analysis on Vietnam premiums   [nL3E7NT00A]
  For Reuters global coffee poll COF/POLL       
    FACTBOX on Vietnam 's 2011/12 coffee crop   [nL3E7FL15B]  
    Robusta beans fell to 37 million dong ($1,763) a tonne in Daklak on Tuesday from 37.4 million dong before Tet, tracking a downturn in international markets.   
    March robustas futures on Liffe LRCH2 slipped $22, or 1.2 percent, to close at $1,843 a tonne on Monday. [nL5E8CU2OS] 
    Buyers were also reluctant to purchase beans and kept the discounts at $40-50 a tonne to the March contract, loading this month, the trader in Ho Chi Minh City said. 
    Some exporters offered premiums for robusta grade 2, 5 percent black and broken beans at $5-10 a tonnes, versus a $10-20 a tonne premium on Jan. 17, traders said. 
    Robusta beans ranged between $1,793 -
$1,853 per tonne on Tuesday, on a free-on-board basis, against $1,804-1,874 before Tet. COFFEE/ASIA1 
    ($1=20,900 dong) 

 

 

 

 
 
Vietnam Coffee

Vietnam Coffee-Prices ease,

more sales expected in Jan - RTRS

Today 13:48

    By Ho Binh Minh

    HANOI, Dec 27 (Reuters) - Vietnamese coffee prices eased slightly this week in line with London futures market before sales could pick up early next year when growers unload beans to prepare for the Lunar New Year, traders said on Tuesday.

    Stocks of fresh beans are plentiful now as farmers have harvested around 80 percent of the 2011/2012 crop in the Central Highlands coffee belt. The harvesting would end in the first half of January, before the lunar new year arrives on Jan. 23.

    "The main activity is only on domestic markets as some speculators are buying for stocking, while foreign buyers are still away for holidays," a trader in Ho Chi Minh City said.

    Robusta prices fell 1.7 percent to 38.5-38.6 million dong ($1,831-$1,836) a tonne on Tuesday in Daklak, Vietnam's main growing province, from 39.0-39.4 million dong a week ago.

    Prices in Vietnam are on par with London's March contract LRCH2, which lost $27 to end at $1,831 a tonne on Friday. SOF/L

         Premiums of Vietnamese robusta grade 2, 5 percent black and broken beans widened to $50 a tonne to London's March contract on Tuesday from $30-$40 a week ago, and bids also rose to a premium of $40 a tonne, from $15-$20 last Tuesday.     

    The premiums placed the beans at between $1,871 and $1,881 a tonne, free-on-board basis, down from $1,898-$1,908 last week. COFFEE/ASIA1

    Traders said Vietnamese farmers were expected to release some stocks before Tet, the country's largest festival to mark the lunar new year.

    "Most farmers are still holding on to their stock, but some could start selling a bit next month," a dealer said.

    The coffee market, among all other markets in the Southeast Asian nation, will close from Jan. 22 to Jan. 26 for Tet, but normal trading is expected to resume after the weekend ending Jan. 29.

    The slowing export from Vietnam, the world's largest robusta producer, could help support domestic prices for a while, traders said.

    Vietnam's coffee exports in December fell an estimated 26.8 percent from a year ago to 120,000 tonnes, or 2 million bags, in line with market expectations, the Agriculture Ministry said on Monday. [nL3E7NK4X2]

    Traders have estimated between 110,000 tonnes and 150,000 tonnes could be loaded from Vietnam this month. [nL3E7N51UH]

    The export revenues this year would jump 45.35 percent from 2010 to $2.69 billion, or an average FOB price of $2,206 a tonne, the agriculture ministry said in its monthly report, suggesting a 46.7 percent rise from last year's average price.

    The United States, Germany, Belgium, Italy and Spain top the list of Vietnamese coffee buyers in 2011, with Belgium replacing Spain as the third-largest buyer, the ministry's data show.  ($1=21,025 dong)  

 
 
Vietnam's 2011/2012 coffee production - RTRS

FACTBOX - Vietnam's 2011/2012 coffee production - RTRS 
 
Dec 7 (Reuters) - Vietnam's coffee output from the 2011/2012 harvest due to end next month is likely to be 9 percent higher than the previous harvest, a senior industry executive said on Wednesday. [nL3E7N73DA]

    For related preview of a coffee conference in Ho Chi Minh City, click [nL4E7N21EM]

    Here are key data and facts about Vietnam's coffee production in the current crop year  ending September 2012, which accounts for 14.5 percent of global output, based on ICO data.

    Vietnam's coffee production and exports (million bags):

    Crop year (Oct-Sept)      2011/12  2010/11  2009/10

    Planting area                    555,065  537,000

    Output    

    - Vicofa         (Dec 7)  20.83    19.17     17.5

    - ICO           (Nov 10)  18.5     19.47     18.2

    - ABN AMRO/VM   (Aug 30)  21.5     20.0      18.4

    - Reuters poll (July 21)  21.0     18.5      19.33       

    - USDA         (June 20)  20.60    18.73     18.5

    - Traders     (May 2011)  23-24    21-22 

    Domestic consumption      

    - ICO          (March 9)           1.58      1.21       

    Export                             21.17     19.97       

    (Vicofa: The Vietnam Coffee and Cocoa Association)      

      

    PRODUCTION

    The coffee crop year runs from October to September in

Vietnam, the world's second-biggest producer after Brazil.

The harvest started peaking from late November and will end

in January, before the lunar new year starts on Jan. 23, 2012. 

    About 30 to 40 percent of the harvest has been picked now, Intimex General Director Do Ha Nam said.

    The previous harvest ended in December 2010, two weeks earlier than usual, as farmers in the Central

Highlands coffee belt rushed to pick beans to catch up with good prices.

    About 80 percent of Vietnam's coffee comes from the region, which borders Laos and Cambodia to the west.

Vietnamese companies and individuals have also leased land in the two neighbouring countries to grow coffee.

    The coffee belt has five provinces: Daklak, Lam Dong, Gia Lai, Dak Nong and Kontum, with output ranking in  that order. Daklak alone produced around 6.7 million bags of coffee a year, about a third of Vietnam's total.

    Vietnam also grows catimor, a variety of arabica. Main areas include the northern province of Son La, Quang Tri province in the central region and Lam Dong in the Central Highlands.

    PRICING

    Vietnam's most common coffee export grade is robusta grade 2, 5 percent black and broken. They are often

quoted at a discount to London robusta futures as buyers want to hedge against risks in delivery timing and bean quality.

    Traders said foreign buyers were waiting for prices to fall at the harvest peak and would jump in to buy if the discount widens to $100 a tonne from $10-$40 now.

    A tonne of robusta rose to between 40.7 million dong and 41.1 million dong on Wednesday in the Central Highlands,

from 39.3-39.4 million dong a week ago, tracking London's rise on Tuesday when the January contract LRCF2 increased $4 to finish at $2,010 a tonne. [nL5E7N63QX]

    For Vietnam's latest coffee export prices: COFFEE/ASIA1.

    STOCKPILING PLAN

    Vietnamese exporters have not started buying beans under an industry-backed plan intended to stockpile more than 440,000 tonnes, or 35 percent of the country's 2011/2012 crop output.

    They have reached agreement with banks over funding, but as farmers were holding back on fresh beans, exporters have not been able to carry out the stockpiling, Nam said.

    The plan, if implemented, could help support London prices as it will reduce the outflow of Vietnamese robusta beans.

    EXPORT

    Vietnam may have exported a record 1.31 million tonnes, or 21.83 million bags, in the 2010/2011 crop.

    The figure is based on government export data for the October 2010-September 2011 crop year,plus loading volumes in October and November, before fresh supplies started hitting the market, traders said. [nL4E7MO0VH]

    The country has more than 150 export firms, but 20 companies account for the bulk of the overall export volume.

    Vietnam exports coffee to more than 80 countries and territories, with the United States, Germany, Belgium,Italy and Spain leading the top 10 buyers so far in 2011.

    Malaysia, Indonesia and China have emerged as growing markets for Vietnamese coffee, exporters said.

 (Reporting by Ho Binh Minh; Editing by Ramthan Hussain)  (( This e-mail address is being protected from spam bots, you need JavaScript enabled to view it )(+844 3825 9623)

(Reuters Messaging: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it ))

 

 

 
 
Vietnam Dec coffee exports may triple to 150,000T-trade - RTRS

06-Dec-2011 10:57

    HANOI, Dec 6 (Reuters) - Vietnam's coffee shipment this month could rise to between 110,000 tonnes and 150,000 tonnes, from 50,000 tonnes exported in November, due to ample supply at the harvest peak and higher buying demand for robusta beans, traders said on Tuesday.

    "The shipment this month will contain newly harvested beans, with the volume from bonded warehouses accounting for a large part," a trader in Ho Chi Minh City said.

    Two traders estimated the shipment at 150,000 tonnes, but noted that exporters selling slowly in recent months may mean more stocks will have to leave foreign traders' bonded warehouses to meet overseas delivery commitments.

    A third trader projected December shipment at 110,000 tonnes, but said the figure could rise to 120,000 tonnes if Vietnamese growers sell faster in the second half of the month.

 (Reporting by Ho Binh Minh; Editing by Ramthan Hussain)  (( This e-mail address is being protected from spam bots, you need JavaScript enabled to view it )(+844 3825 9623)(Reuters Messaging: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it ))

 
 
TAKE A LOOK-Coffee Outlook Conference in Vietnam - RTRS

Today 11:33 

Global coffee output under the current crop year is kept steady to the previous forecast and down from the previous season, though the International Coffee Organization has revised up output forecast from No. 3 producer Indonesia and lowered its prediction for Colombia, the fourth-largest. Output from No. 2 producer Vietnam rose but has peaked and exports could fall next year on rising domestic consumption. Delegates at a coffee conference are also discussing the demand outlook at a time of global economic slowdown.

    For more from the Coffee Outlook conference in Ho Chi Minh City, Vietnam, and other related stories, click on the codes in brackets. 

------------------------
 (Page Editor: Ramthan Hussain, Southeast Asia C&E, + +65 6 870 3824)    
 
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