Vietnam’s coffee market report in first 10 days of Jun

The coffee price in Vietnam’s market recently was maintained in the increasing impetus because the storage volume caused pressure on business operations in the domestic market. Purchase volume of exporters is falling because farmers kept goods to wait for a higher price.

The wholesale price of coffee bean purchase in Highland provinces in first two days of June 2010 was kept stable at 24,200-24,300 dong per kilogram or $1.28/kg, up 400 dong from the previous week. Till June 9, the price climbed to 24,400-24,700 dong/kg or $1.29-$1.3 per kilogram.

Currently, farmers said that they would sell out coffee when the price reaches 25,000 dong/kg.

In the period from June 1 to 2, the coffee export price of Vietnam was equal to that of London market for July deadline. At Saigon port, robusta coffee (2 and 5 percent broken black coffee) was shipped at $1,310-$1,340 per tonne fob against late May’s $1,280-1,325 per tonne.

On June 9, the export price fell $20-30 per tonne right after the forecast that Brazil, the world’s largest coffee producer will welcome a robust coffee crop in 2010.

At this time, exporters are enhancing purchase for storing 200,000 tonnes of coffee according to the government’s directive. According to Vietnam Cocoa and Coffee Association, the storage plan can bankrupt because Agribank, the bank was appointed to provide loans for purchasers, was very slow in disbursement. Till June 3, companies just consolidated only 4-5,000 tonnes of coffee for temporary storage.

During the first eight months of 2009-2010 crop (lasting from last October to May 2010), Vietnam exported total 840,600 tonnes or 14.01 million 60-kg bags, down 5.3 percent against the previous crop.

Most recently, Business Monitor International (BMI) optimistically said about Vietnam’s coffee prospect that by 2014, the country’s coffee harvesting output will surge 23 percent over 2009. Thanks to Vietnamese government’s commitment in upgrading quality of coffee bean and supporting exports by purchasing a large volume of coffee from farmers, the coffee export will be more satisfactory.

US Department of Agriculture (USDA) also estimated that Vietnam’s coffee harvesting output in 2010-2011 crop will increase by 7 percent from the previous crop’s 17.5 million bags to 18.7 million 60-kg bags.

Vinanet

Tags: Vietnam Coffee, vietnam coffee exports