JavaScript is off. Please enable to view full site.

Vietnam coffee traders cut output forecast by 10 percent

Saturday, January 12, 2019, 07:58 GMT+7
Vietnam coffee traders cut output forecast by 10 percent
A man checks roasted coffee beans at a factory in Hanoi, Vietnam November 22, 2016. Photo: Reuters

HANOI/BANDAR LAMPUNG - Traders in Vietnam lowered their coffee output forecasts by ten percent this week as a bumper harvest in the world’s largest robusta producing country came to an end.

They now expect an output of about 27 million bags of 60 kg each for the 2018/19 crop year that began on Oct 1, compared with earlier forecasts of 30 million bags.

“We are not surprised to see a lower output as stubbornly low domestic prices have discouraged many farmers to fertilize and water their trees, while weather condition was also not supportive,” a trader based in the province of Dak Lak said on Thursday.

“Farmers in the Central Highlands have harvested all of the fresh beans of the 2018/19 crop year,” he said.

Farmers in the Central Highlands, the country’s key coffee growing area, sold coffee at VND33,500-34,000 (US$1.44-1.47) per kg on Thursday, compared with VND33,200-33,700 a week earlier.

“Though output is lower, domestic prices have not risen due to external factors, including larger forecasts by foreign agencies,” said another trader based in Ho chi Minh City.

Vietnam’s coffee exports in January are forecast to be between 150,000 tonnes and 180,000 tonnes, compared with an estimated 160,000 tonnes in December.

Traders in Vietnam offered 5 percent black and broken grade 2 robusta at a $40 per tonne discount to the March contract, compared with a $45-$50 discount last week.

Meanwhile, in Indonesia, trading continued to be muted with traders saying premium for the grade 4 defect 80 robusta stayed unchanged for a fourth straight week at $20-$30 to the March contract.

“Supply may only start coming around April because some areas in Bengkulu will have some harvest then,” said a trader, referring to a province neighbouring Lampung.

Main robusta harvest in southern Sumatra typically takes place around the mid-year, but a smaller harvest usually happens a few months earlier.

($1 = VND23,200)



Read more




Experience summer sand-boarding in Mui Ne

Sand-boarding, a popular activity amongst local children in the coastal tourism town of Mui Ne in south-central Vietnam, is attracting hundreds of tourists to the Red Sand Dunes

Young maple trees given better protection as Hanoi enters rainy season

The trees are currently growing well, with green leaves and healthy branches.

Hunting skinks for food in southern Vietnam

Skink meat is known to be soft, tasty, and highly nutritious.

Vietnamese-made app allows people to grow real veggies via smartphone

Nguyen Thi Duyen, a young engineer in Hanoi, developed the app and its related services to help busy people create their own veggie gardens.

Chinese tourists hit by Vietnamese over dine and dash

Four Chinese were reportedly injured, with one having a broken arm.

Latest news

Nokia rolls out software upgrade to 5G

Nokia said the software upgrade was available immediately for about one million radio stations, growing to 3.1 million by the end of the year and to over 5 million in 2021