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  • Jan 13th, 2016
  • Comments Off on Vietnam’s January coffee exports seen rising; prices hit to 26-month low
Vietnam's coffee exports are set to pick up in January with many forward contracts fixed for upcoming months, while domestic prices dropped further to hit a 26-month low on rising stockpiles after the harvest, traders said on Tuesday. Vietnam's coffee exports in January are forecast to be between 130,000 tonnes and 140,000 tonnes (2.17 million to 2.33 million 60-kg bags), against an estimated 130,000 tonnes shipped in December.

"Exporters are selling, trade is relatively robust now, much better than last week," said independent analyst Nguyen Quang Binh. Robusta grade 2, 5 percent black and broken in Vietnam, the world's top robusta producer, were traded at premiums of $30-$40 a tonne to the ICE March contract this week, rising from premiums of $20-$35 last Tuesday despite lower futures prices.

Robusta futures have been falling in line with lower crude oil prices. ICE March robusta contract was traded down $41 at $1,444 a tonne on Monday, falling nearly 9 percent so far in the 2015/16 season that began on Oct. 1. Low domestic prices have prevented growers from rushing to unload stocks. Domestic prices declined further to 31.6-32.5 million dong ($1,408.51-$1,448.63) a tonne from 33.3-33.8 million dong a week ago, the lowest level since November 2013, Reuters data showed. "With this price level, growers will not take enough care of the trees," said Van Thanh Huy, chairman of exporter Inexim Daklak. "This may partly affect 2016/2017 output", he added.

Copyright Reuters, 2016


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