Each day TFO Canada publishes a sample of trade news on the Canadian import market along with any new, updated or changed regulations and legislations regarding international trade; countries in which TFO Canada offers services and on the export sectors which it promotes.
Vietnam coffee prices gain, exports to rise in JanThursday, January 08, 2015 > 10:13:40
Vietnam's coffee trade, which was slow due to holidays and low prices in late 2014, is expected to revive this month with higher shipments as farmers need cash for expenses, traders said on Tuesday.
Coffee prices in the world's largest robusta-producing country advanced this week to a three-week high, extending a 16 percent rise logged in 2014.
Vietnam, with output of nearly a fifth of the world's total in the 2014/2015 season, finished harvesting in most of its Central Highlands region last month, with output falling 1.6 percent to 29.4 million bags, USDA data show.
"There are still some areas in Lam Dong where harvesting is ending," a Vietnamese trader said of the country's second-biggest growing province after Daklak. Traders said many farmers had deposited fresh beans in the warehouse of exporters and buying agents to get a cash advance and were waiting for higher prices to complete the sales.
On Tuesday robusta advanced to 39,800-40,000 dong ($1.86-$1.87) per kg in Daklak province from 38,500-39,000 dong a week ago after the London robusta market closed up.
The 40,000 dong price is the highest since Dec. 15.
On Monday arabica futures surged more than 4 percent after forecasts of below-normal rainfall in Brazil, buoyed by a technical support level, and March robusta rose $47, or 2.5 percent, to end at $1,911 per tonne.
Vietnamese robusta grade 2, 5 percent black and broken stood at par to a premium of $20 a tonne to London's March contract, widening from par to a premium of $15 a tonne last Tuesday, while foreign buyers were bidding at discounts of $80 a tonne.
An exporter offered robusta grade 2 at a discount of $25 to the March contract before the London market closed up on Monday.
The robusta market could gain slightly at its opening on Tuesday, independent analyst Nguyen Quang Binh said. Vietnam is forecast to export 150,000 tonnes (2.5 million bags) of the commodity this month, up a quarter from December 2014, as farmers need cash, traders said on Tuesday.
That would bring exports in the crop year ending September 2015 to 449,800 tonnes, up 7.3 percent from a year ago.