HANOI/BANDAR LAMPUNG, Indonesia: Heavy rains and robust winds triggered by a hurricane hit Vietnam’s key espresso rising area this week, posing a risk to the nation’s harvest, whereas the Indonesian market was tepid on the finish of the harvest season, merchants mentioned on Thursday.
Storm Molave, essentially the most intense one to hit Vietnam this 12 months, flooded low-lying areas in a key coffee-growing area and ripped some espresso cherries off the timber.
In the meantime, the Central Highlands, Vietnam’s important espresso belt, is anticipated to see intermittent rainfall over the following 10 days, which can have an effect on harvesting, as per the Nationwide Meteorological and Hydrological Middle’s forecast.
“No estimation of the storm’s affect is out there but however steady rainfall has prevented beans from turning ripe and prepared for harvest,” one dealer based mostly within the espresso belt mentioned.
“It seems like new beans won’t be obtainable till the second half of November.”
One other dealer based mostly within the area was involved over the rains in November, which might hamper beans selecting and drying course of.
Farmers within the Central Highlands offered espresso at 32,400-34,000 dong($1.40-$1.47), in contrast with final week’s 31,100-33,000 dong vary.
The London ICE January contract had gained 5.3% over the previous week as of Wednesday’s shut, Refinitiv Eikon knowledge confirmed.
Merchants in Vietnam provided 5% black and damaged grade 2 robusta at premiums of $170-$200 per tonne to the January contract, widening from final week’s $170-$180 premium vary.
In the meantime, costs of Indonesia’s Sumatran strong beans have been unchanged from final week, merchants mentioned in Lampung province mentioned, as harvest ended.
“It’s very quiet this week as a result of harvest has ended by the tip of October,” a dealer mentioned.
One of many merchants quoted $170 premium to the January contract, whereas one other provided $270 premium to the November contract, including that espresso middlemen have been nonetheless holding on their remaining shares.
($1 = 23,174 dong)
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