Asia coffee's quotations unchanged; Concerns over rain in Vietnam
Asia coffee's quotations unchanged; Concerns over rain in Vietnam
Discounts of Vietnamese and Indonesian coffee were steady on Thursday, as rain continued to pose a threat to Vietnam's harvest, while dwindling stocks kept Indonesian coffee trade dull, traders said.
Rain in recent weeks have delayed the maturing process of coffee cherries in the Central Highlands of the world's biggest robusta producer, raising concerns over supply in the next few weeks.
"The harvest comes in later than usual and if the weather does not improve, there may be some shortages in the first half of November," said Phan Hung Anh, deputy director of Anh Minh Co based in Daklak, Vietnam's largest growing province.
The rainy season often ends in early November, ahead of the peak harvest season later next month.
ICE robusta futures touched a two-year high on Wednesday over concerns of a global production deficit and wet weather in Vietnam.
Robusta beans rose to 44.5-45 million dong ($1,993-$2,016) per tonne on Thursday in Daklak, from 44-44.7 million dong early this week.
At 45 million dong, the price is the highest since the week ended March 30, 2013, based on Reuters data.
Vietnamese robusta grade 2 were traded unchanged in the past week at discounts of $50-$60 a tonne to ICE January contract , which ended at $2,178/tonne on Wednesday.
Beans grade 1, similar to the Sumatran coffee, stood at a discount of $5 a tonne.
While most farmers have run out of stocks, old-crop beans kept by foreign firms were high and could help meet demand from roasters, traders said.
Vietnam's coffee exports in the first half of October, the first month of the 2016/2017 season, jumped 45.2 percent from a year ago to 60,700 tonnes, Vietnam Customs data showed.
In Indonesia, exporters and farmers were holding onto their thin stocks, keeping trading light, traders said.
Indonesia's robusta grade 4, 80 defects COFID-G4-USD stood at par with ICE January contract or a premium of $5 a tonne. Last week they were quoted at par to a premium of $7 a tonne.
Vietnam's 2017-18 crop outlook
River water levels are expected to be 20-60 percent below average in the Central Highlands during the dry season that lasts until April, the United Nation team in Vietnam said in a report on Tuesday.
Water shortages during the February-April flowering period for the next 2017/2018 crop cycle could reduce coffee output.
