Rains delay Vietnam's coffee harvest, bean quality at risk

Rains from a cold snap hit Vietnam's central highlands coffee belt since late last week, slowing harvest and affecting bean quality in the world's top robusta producer as drying is disrupted, traders said on Tuesday. The bean quality from cherries picked in late November could worsen, with more black beans expected due to the wet weather, traders said.
"There have been no sales from farmers as they are still drying," said a trader in Buon Ma Thuot, the capital of the top growing province of Daklak. Some limited supply was coming from local processing units which have drying machines, the trader said.
This is the second time in about a month that harvest was hit by rains. Global robusta futures rose in early November when rains slowed the pace of harvesting in Vietnam. The rains could linger until Thursday in Daklak, with the rainfall higher than the average in recent years, a provincial weather report said.
"The drying process has been affected and surely the exportable volume will be down," said General Director Le Tien Hung of Simexco, a leading export firm based in Daklak. As of late November, around half of the 2016/2017 crop had been picked and traders had expected the harvest will be completed by mid-December.
Robusta prices were unchanged at 43,000-43,200 dong ($1.89-$1.90) per kg on Tuesday in Daklak, after ICE January contract closed flat at $2,064 per tonne on Monday. The prices were at 43,500-43,800 dong per kg last Tuesday. Vietnamese robusta grade 2, 5 percent black and broken beans were offered at discounts of $40-$45 a tonne to the ICE March contract, while bids stood at $50-$60 a tonne. Last Tuesday, the beans were quoted at $50-$65 a tonne below the March contract.
Vietnam's 2016/2017 output is projected at 26.6 million 60-kg bags, 8 percent below the previous season due to dry weather, the US Department of Agriculture attache in Vietnam said, and revised down from 27.3 million bags forecast in June. Separately, the Vietnam Coffee and Cocoa Association, the industry body, projected a fall in production of up to 20 percent and BMI Research saw a 5 percent drop.