Rains in Vietnam’s coffee areas are improving conditions after dry weather and helping farmers apply the first round of fertiliser.
The wet season started 10 days to 15 days later than normal in the middle of May, said Nguyen Dai Nguong, head of Dak Lak’s meteorology and hydrology department. While the downpours have not been as heavy as growers wanted, they brought much needed moisture, he said by phone on 16 June .
Water is crucial for helping trees absorb fertilizer so the fruit don’t drop off, said farmers in the world’s biggest producer of robusta used by Nestle SA. Forecaster Commodity Weather said last month that production in Vietnam was at most risk from El Nino, which Australia says has signs reminiscent of the most severe event in 1997-1998.
The wet weather may curb gains in London futures which have climbed 13 per cent from an 18-month low in May.
“Good and regular rains started this past weekend and alleviated the situation over the coffee belt with the exception of Gia Lai Province, where rains have been only scattered and overall dry conditions continue,” Tong Teik Pte, owned by RCMA Commodities Asia Pte, said on June 17.
Farmers “feel now more confident that this upcoming crop will be a good one and certainly better than the low past one,” it said.
Farmers have been stockpiling beans in anticipation of higher prices. Growers held 35 percent of this year’s 1.56 million ton crop at the end of May, the most since at least 2010, according to a Bloomberg survey this month. While El Nino is seen as a threat to the harvest starting in October, output is still forecast to reach 1.72 million tonnes, matching the record in 2013-2014, it showed.
News by Bloomberg, edited by ESM
