Premiums for Vietnamese coffee were steady amid reports of May exports surging 61 percent from a year ago, while Indonesian coffee prices edged down on increasing value of the US dollar over the rupiah. The premiums stayed level despite futures prices easing. Robusta futures for September edged down on Wednesday to close at $1,667 a tonne.
Vietnamese robusta grade 2, 5 percent black and broken were quoted at premiums of $30-$40 a tonne to the ICE September contract, from $35-$40 last Thursday. June coffee exports from Vietnam, the world's biggest robusta producer, are forecast between 150,000 and 170,000 tonnes (2.5 million and 2.83 million 60-kg bags), versus 170,000 tonnes in May.
"We expect this month exports at around 150,000 tonnes, even more if the prices rise higher," said Phan Hung Anh, deputy director of export firm Anh Minh in Daklak province, Vietnam's main growing region. Rain is returning to Vietnam's parched coffee belt after the worst drought in 30 years that may have cut 2016/2017 output in the country from 8 percent to 30 percent, according to forecast of traders and officials.
Vietnam's October-September crop year begins with the harvest that lasts from late October to January. Coffee prices in rival robusta producer Indonesia eased this week, with premiums of beans grade 4, 80 defects quoted at $110-$130 a tonne to the July contract, from premiums of $120-$130 last Thursday, traders said. "The declines in premiums were a result in the increasing value of the dollar over the rupiah," an exporter in Lampung said. A coffee farmer in West Lampung said coffee cherries are developing well and expects to harvest in July. Indonesia's output from the harvest in Lampung is expected to rise 20 percent from a year ago, according to an analyst.
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