Vietnam Coffee Stocks May Curb Exports, Morgan Stanley Says
Plans to stockpile coffee in Vietnam, the world’s largest producer of the robusta variety, may limit exports early in the season, according to Morgan Stanley.
Exporters in the Southeast Asian nation agreed to stockpile 420,000 metric tons of beans in 2011-12, Luong Van Tu, chairman of the country’s Coffee & Cocoa Association, said Sept. 27. Vietnam will produce 1.25 million tons in the season that started this month, Nicolas Tamari, managing director at Sucafina SA, a Geneva-based green-coffee trader with offices in Vietnam, said in a Sept. 30 interview.
“The government plans to stockpile coffee beans to prevent a repeat of last year’s stock-out could reduce early season exports,” Hussein Allidina, head of commodities research at Morgan Stanley in New York, said in a report e-mailed today.
Prospects for the crop are “generally favorable on good weather and a larger cultivated area,” he said.
Robusta coffee for November delivery rose $8, or 0.4 percent, to $2,033 a ton by 9:13 a.m. on NYSE Liffe in London, reducing this year’s drop to 3.1 percent.
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