Despite a record harvest on the horizon, coffee exporters in Vietnam are being asked to not sign forward contracts for promised beans, after numerous companies failed to honor such contracts earlier this year.
“We have told state-owned coffee companies to not sell forward when they don’t have actual coffee,” Vietnam’s Deputy Minister for Agriculture and Rural Development Diep Kinh Tan told Bloomberg reporters, adding that private middle men and exporters have been given the same advice.
According to a Bloomberg survey, Vietnam is expected to produce 1.32 million tons of robusta beans this month, compared to 1.17 tons last year. According to the Bloomberg report, shippers in Vietnam delayed or canceled as much as 60,000 tons of exports from the last crop in June and July, when robusta prices worldwide were at record highs.
The full story: Bloomberg