Coffee prices due to the prospect of losing seasons

► forecast of a good harvest in Vietnam prompted speculators to strengthen international coffee prices down bet ...

 

Occasional rain in the Central Highlands region has facilitated the development of good berries and increase the quality of the crop.

Robusta coffee prices in the international market from early next month has fallen more than 7% due to the forecast of a bumper crop in Vietnam, the largest robusta coffee producer in the world.

Occasional rain in the Central Highlands region has facilitated the development of good berries and increase the quality of the crop. Talking to Bloomberg financial news agency, Mr Cao Van Tu, chairman of Ea Pok Coffee Co. in Dak Lak, said berries this year "a little bigger than last year."

Mr. Mai Ky Van, Deputy Director of Coffee Limited - Cocoa November assessment, the coffee harvest season will be more than last season.

Forecast of a good harvest in Vietnam prompted speculators to strengthen international coffee prices down bet. From 1-2 months of this year, the international price of robusta coffee rose 4% due to concerns over dry weather in Vietnam will cut production of the coffee crop began in January 10/2013. However, from early June until now, the international price of robusta coffee fell 7.3%, according to data compiled by Bloomberg.

At Highlands, coffee prices bucket on 14/6 has dropped to 36,600 VND / kg, the lowest since 3/2/2012, ie more than 16 months, according to the Center for Trade and Travel Dak Lak calendar. Today (19/6), in the Central Highlands coffee prices rose at 38300-38500 / kg.

"Drought is no longer a problem in the Central Highlands of Vietnam again. Robusta coffee prices in our range from flat to down slightly in price. Without major changes in the weather, we expect the price to about 1700-1900 dollars / ton in the near future, "said Sterling Smith, an expert of Citigroup, talk with Bloomberg.

Robusta coffee for May delivery price 7/2013 session in London on 18/6 at $ 1,744 / ton, up 6 USD / ton compared with the previous session.

Arabica coffee prices and the downward trend from earlier this month so far, with a 3% decrease. Dry weather has created conditions favorable for the coffee harvest in Brazil, the country largest producer of arabica coffee in the world. According to the Government of Brazil, the country's coffee output this year will reach a record.

Reuters said the coffee farmers in the Central Highlands does not want to sell out for that discount. This situation led some companies export coffee is hard enough collecting goods for delivery to customers in accordance with the signed contract. According to traders, the coffee growers are waiting for prices up to $ 40,000 / kg to sell.

According to customs statistics, in May, Vietnam exported 116,700 tonnes of coffee, up 5.3% compared to April, and a little higher than expected. Vietnam's coffee exports in May more than expected is also seen as a cause downward pressure on prices for the international coffee market.