Vietnam’s 2013/2014 coffee crop output could jump around 10 percent from the current season due to favourable weather, but the amount of rain over the next few months will determine the actual crop size and quality, traders said on Thursday.
Rising output in Vietnam and top producer Brazil could lift world coffee inventory to its highest level in the 2013/2014 crop year, keeping downward pressure on prices. (Full Story)
Liffe September robusta coffee LRCc2 closed down $14, or 0.8 percent, at $1,810 a tonne on Wednesday on expectations of a large crop from Vietnam. (Full Story)
Vietnam’s next harvest is forecast at 27 million to 29 million 60-kg bags, more than a United States Department of Agriculture projection of a fall to 24.8 million bags from the 2012/2013 season’s 25 million bags. (Full Story)
Following a dry period early this year, rain has been improving the expected production for the crop due to start in October in Vietnam, the world’s largest robusta producer, four traders at foreign firms in Ho Chi Minh City said.
“The next six to seven months are important to the crop,” said Jean-Christophe Mani, country manager for Ho Chi Minh city-based Atlantic Commodities Vietnam Ltd.
He said rain at the start of the harvest, however, could damage cherries or worsen the bean quality.
Vietnam’s coffee crop year runs from October to September, with the harvest peaking in November or December and often ending in January. The last harvest ended in December 2012, about a month earlier than usual.
This year the rainy season started in the first week of May, about 10 days earlier than usual and that may allow early harvesting of the next crop. (Full Story)
The Vietnam Coffee and Cocoa Association, the industry body known as Vicofa, forecast in early June that the 2013/2014 output would fall by as much as a quarter due to a drought.
Traders have dismissed the projection, saying the crop was in good shape and that underestimates of the output by the association were aimed at inflating prices. (Full Story)
Vietnam is expected to keep its coffee output stable, even though part of the trees under plantation are old and need replacing, industry officials say.
A total of 150,000 hectares (370,000 acres), or a quarter of the country’s total coffee acreage of 622,000 hectares needs new trees over the next decade to ensure output will not drop, said Pham Dong Quang, a manager at the agriculture ministry.
“The replacement is now under way and its pace will depend on available resources,” Quang told Reuters on the sidelines of a news conference in Hanoi, adding that replanting would be phased-in gradually to ensure stable production.
At the conference, Mondeles International Inc, the world’s second-largest coffee company, said it would open a training facility in Vietnam’s Central Highlands coffee region to help farmers raise yields and ensure sustainable production.