JULY 18 (SpillingTheBeans)–Coffee exports from Vietnam in the month of June plummeted 37 percent to 1.472 million 60-kilogram bags compared to the same month last year, Vietnam’s General Statistics Office (GSO) in Hanoi said this week.
The figure was even lower than the estimate issued by the GSO last month for June exports to reach 1.7 million bags, a drop attributed to a combination of lower availability and producers holding back on coffee still left from the 2012-13 harvest, traders in Vietnam said.
Compared to shipments in the month of May, Vietnamese exports in June were down 24 percent. The lower than expected volume for Vietnam has been cited as the direct reason for Robusta coffee prices at the LIFFE exchange in London to rally to 7-week highs this week.
In an Exclusive SpillingTheBeans’ Harvest Insight published earlier this month we reported that evidence has been growing on multiple fronts of the smaller than expected coffee harvest in Vietnam, the world’s 2nd largest coffee producing and exporting country. Despite many traders remaining convinced of another huge crop from Vietnam in the current 2012-13 cycle, for which harvesting has been completed and shipments are now being wrapped up, the figures just don’t add up.
The Vietnamese Agriculture Ministry recently reported that coffee exports in the first six months of 2013 from January through June have fallen more than 25 percent to about 13 million bags, as early hopes for another bumper crop in the 2012-13 cycle was crushed by weather complications.
Stay tuned for more reports on the new harvest in Vietnam, coming up in the next few here at SpillingTheBeans.