Harvesting of the 2011-12 coffee crop in Vietnam, the largest producer of the robusta variety, may start a month earlier than usual due to favorable weather, according to ABN Amro Bank NV and researcher VM Group.
The Southeast Asian will produce 21.5 million 60 kilogram (132.3 pound) bags of robusta beans next season and 400,000 60 kilogram bags of arabica coffee, ABN Amro and VM Group estimated in a report e-mailed today. That compares with a robusta output of 20 million bags and 400,000 bags of arabica in the current season, according to the report.
“Fresh beans from the new Vietnamese robusta crop are expected to start filtering through the market in late October, a month earlier than usual following a season of particularly favorable growing weather,” analysts led by Gary Mead, of VM Group, wrote in the report.
The next crop will also benefit from farmers’ “improved financial standing” and “good prices,” according to the report. Expectations of a large crop have led the premium for Vietnamese coffee to fall to $110 a metric ton over the price on NYSE Liffe in London this month from $200 a ton, they said.