Local Market In-Brief
*Disclaimer: Here’s a glimpse of our past report. Stay informed with the latest updates by subscribing to our mailing list for the most current information.
- Relentless rallies on the London ICE-EU exchange have caused a sharp crash in differentials. Spot FOB offers are now negative against the heavily inverted X position, marking the first time Vietnam has seen negative differentials in a long time. Forward new-crop differentials for Dec/Jan/Feb shipments remain around +100.
- Our team conducted an upcountry survey last week. Very few farmers are selectively picking early ripe cherries, primarily because there was no off-season rain last year, which means no early blooming flowers were triggered. As a result, the upcoming harvest is expected to be delayed by approximately 10-15 days compared to last year.
- Most farmers sold out their stocks by the end of July and August at prices ranging from 124,000 to 128,000 VND/kg. Forward sales by farmers are significantly lower this year, estimated at just 1%-2% of the crop so far, compared to 3%-5% at the same time last year. This reduction in forward sales is attributed to better-capitalized farmers who have fewer financial needs and buyers who are cautious after facing numerous contract defaults last season.
