Liffe Coffee Gains on Vietnam Stockpiling Move -- Market Talk

Liffe robusta-coffee futures continue to rise, boosted

by news that Vietnam's agriculture ministry is attempting to push through

measures to help coffee exporters stockpile beans. According to an official

with the Vietnam Cocoa and Coffee Association (Vicofa), the agriculture

ministry is seeking the prime minister's approval to lend money to coffee

exporters so they can store about 20% of their beans until prices rise. Vietnam

is the world's largest grower of robusta coffee, a variety used primarily in

instant-coffee blends. While the Vietnam news "provided the narrative" for an

initial price rise, short-covering has helped accelerate the move, says a

broker. January robusta rises 0.4% to $1,597/ton