Coffee inventories in Vietnam, the top global producer of the robusta variety, can sustain only three months of exports, Nedcoffee BV said.
Stockpiles came to 187,343 metric tons at the end of May, with 130,306 tons stored in bonded warehouses, the Dutch trader estimated in a monthly report e-mailed today. The Southeast Asian country exported 80,118 tons last month, said Nedcoffee, which has local offices.
“Currently, according to some traders in Dak Lak, the inventory of the farmers and the exporters is just under 200,000 metric tons, only enough for 3 months export,” the trader said. Dak Lak is Vietnam’s main producing region.
“Two large companies” own more than 50% of the coffee stored in bonded warehouses and private warehouses of foreign firms, Nedcoffee said, without being more specific.
Companies with ample reserves are selling beans at elevated prices to exporters that need to meet previously signed contracts, according to the report.
Vietnamese coffee commands a premium of $160 a ton over prices on NYSE Liffe, Nedcoffee said. Robusta for September delivery slipped $3, or 0.1%, to $2,273 a ton on the exchange by 10:57 a.m. in London. Prices are up 8.4% this year