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The Tokyo Grain Exchange (TGE) decided to create a working group to conduct a feasibility study on expanding robusta coffee's delivery points to Exchange designated warehouses in Vietnam.
At the Coffee Committee held on May 12, 2009, the Tokyo Grain Exchange came to the decision to begin feasibility studies on adding Vietnam to it's robusta coffee's delivery points in order to appeal to a wider range of market participants.
Presently, Vietnam is the second largest coffee producing country in the world and at the same time it is located close to Japan with only a small time difference. Vietnam is the third largest country to export coffee to Japan following Brazil and Colombia. Furthermore, Japan is the number one importing country for Vietnam robusta coffee.
The members of the working group be comprised of Nestle, Marubeni and Mitsui Bussan along with warehouse companies and others related to the industry and they will partake in studies of the practicability of Vietnam as a delivery point. If TGE decides to allow coffee deliveries for its robusta coffee futures contract in Vietnam, TGEbelieves that this will assist in the enhancement of the coffee industry as it will be able to provide new risk hedge instrument for not only Vietnamese coffee producers but also the coffee industry worldwide.
TGE's working group plans to hold discussions with those in the coffee industry in Vietnam and have results of this study within 6 months.
