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Coffee rises in London on concerns Vietnam holding back supply
Robusta coffee rose in London on speculation that Vietnam, the largest producer of the bean, will hold back supplies in anticipation of higher prices.
Vietnamese coffee shipments to the US slid 2 percent by value in the first five months of the year, data from the US International Trade Commission show.
Prices in London averaged 44 percent more in the period.
Producers are “very well capitalized” and will wait for higher prices, the Fortis Bank said in a report last month.
Robusta coffee for September delivery closed up US$13, or 0.6 percent, at $2,358 a metric ton on the Liffe exchange in London.
Coffee exports from the main growing regions in Indonesia, Asia’s second-largest producer, tripled in the first half.
Shipments from Lampung, Bengkulu and South Sumatra advanced to 118,785 tons, according to data today from the Association of Indonesian Coffee Exporters.
“The fact that Indonesia has exported substantially more this year has gone a long way in satisfying the recent rise in futures prices,’’ Ralph Hawes, head of the coffee trading desk at Sucden (UK) Ltd. in London, wrote in an e-mail.
Sugar for October delivery fell as much as $5.60, or 1.4 percent, to $387.40 a ton on the Liffe exchange in London.
Cocoa for September delivery closed up 28 pounds, or 1.8 percent, at 1,568 pounds ($3,143) in London, its second consecutive advance.
Thanhnien
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