Vietnam seen firmer today as market opened with raw material price at 72,5 VND/kg an uptrend by about 3,5% from opening week 30 level.
Small demand was mostly seen from Asian importers specifically from China and Pakistan buyers, while USA and EU are still on a look out for Q4/Q1-2024.
Covering from some shippers were also reported with few to no offers of raw materials from local suppliers which prompted shippers to also be inactive last week.
Indonesia still stable with few demands, mostly for forward positions. Speculators were also seen buying.
Brazil facing difficulty in buying raw materials from the field amid harvest seasons.
Offers are very limited from shippers who are still trying to cover their earlier booked contracts while farmers are holding their offers prompting shippers to stop offering ending week 30.
Although good production is expected, harvest is slow and delayed due to coffee crop that is being prioritized.
Market is showing firmness, but we could expect it to cool down later on (also if forex rates cooperate) due to good crop size in this region and as well as Para region that is also on going.
From this origin, specifically from Vitoria port where most cargoes are loaded, apparently having serious issue with lack of containers and limited vessel availability.
This is now causing dilemma with both coffee and pepper exporters.
Another issue that is brewing is climate change that could cost a potent economic storm.
Reports of extreme weather condition in southern Europe and North Africa this month suffering from sweltering heat while in some countries, thunderous storms leading to flooding in others.
Further consequence to negatively impact the crop that may lead to further food inflation worldwide
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