Coffee Supplies From Top Shipper Vietnam Seen Shrinking Further
- Hot and dry weather threatens production later this year
- Exports seen dropping 20% as farmers plant other crops
Coffee cherries at a farm in Buon Ma Thuot, Vietnam.
Photographer: Maika Elan/BloombergThis article is for subscribers only.
Global supplies of robusta coffee used in espresso and instant drinks are set to tighten further as a heat wave threatens production in top exporter Vietnam, compounding losses from farmers switching to other crops.
“Overall, the coffee-growing regions are hot and dry,” Ho Chi Minh City-based Tuan Loc Commodities said in a note. “While we are still in the dry season and this weather is not unexpected, it’s noteworthy that rainfall has been at the lower end of the 10-year range, and temperatures are on the higher side.”