Vietnam - Vietnam's May coffee exports may fall

Vietnam's coffee exports in May could fall to 110,000 to 130,000 tonnes (1.83-2.17 million bags) from an estimated 150,000 tonnes shipped in April, due to lower prices for farmers, traders said on Tuesday.

Prices hovered below a key psychological level of 40,000 dong ($1.92) per kilogram for most of April, which discouraged farmers from releasing stocks to exporters, traders said.

Tightening supply from Vietnam, the world's largest exporter of robusta variety, could lend support to global coffee prices.

Last Friday, London's July robusta contract gained 2.23 percent to close at $2,019 a tonne.

London softs markets were closed on Monday.

"Sales are slowing so the volume this month will fall (from April)," a trader at a foreign company in HCM City said.

Robusta beans stood at 39,500-39,800 dong ($1.90-$1.91) on Tuesday in Dak Lak, Vietnam's key growing province, from last week's range of 38,800-39,300 dong.

"Farmers at present do not have pressure to sell, after their watering period comes to an end," another trader in HCM City said.

With the rainy season returning on schedule to the Central Highlands coffee belt from early this month, farmers will only need small amounts of cash for fertiliser, traders said.

Exporters were seeking to sell Vietnamese robusta grade two, 5 percent black and broken at a discount of $30 a tonne to London's July contract, while buyers bid at a discount of $40 a tonne, stable from a range of $30-$40 in late April.

The differentials meant the beans stood at $1,979-$1,989 a tonne, free-on-board Saigon Port for outright shipment, down from $2,004-$2,014 a tonne in late April.

Reuters

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