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2014 Year-end letter


Commodities traders would feel privileged and extraordinary to have witnessed violent turbulences in the world market last few years, especially this 2014. What we have seen can only happen in a decade or even in a life time

 

QE3 is more than a catalyst but a locomotive drives commodities index on a heart-attack roller-coaster. Crude oil is from 120 to 60, gold from 1600 to 1170, natural rubber from 2500 to 1500, CRB from 314 to 250 by now and many other commodities going south while USD heads north every day. Japanese yen lost about 35% of its nomination, EU started its own stimulus and perhaps China will follow suit. Economic indicators, such as CPI, inflation, GDP, MPI etc… of those 03 key players show negative trend.

 

Like in sunny days, we are all happy and upbeat in bullish market watching screen full of green indexes. But it is not the case in a bear market when the sky is grey, traders feel blue and suffered.

 

To us, this 2014 is not bad thanked to our correct timing on market side, our well-studied approach in trade and our diversification policy as well. Business network is widened while the connection is strengthened on both local and international markets. We received more appraisals and positive comments from customers on our services, contract performance and quality of goods. For us, those are special merits if you look at grand picture of the market and the fluctuations.

But what really make us and this 2014 a plus are below;

 

- Software: Our team has worked well with Software developers for months and we invested a lot of time, efforts to open our black box and pass to them. The software will let us access to the system online, update and manage the Position. Our Traders, from now on, will know exactly by a click how many tones of cargo at what price, what specifications, package condition, bought from whom, allocate for which contract, the exposure (finance, quantity and shipment time) with whom from where. Finance, Admin, Traffic work is no more a burden. Management will be very hand-on with reporting system.

 

- Above our peers, our bank credit line is increased 200% compare to last year thank to promising and positive financial statement and turnover. FX, options, swaps and other sophisticated transactions are in use effectively. Cash-flow is fast and sufficient to serve our business and this year Finance and Accounting department raised their trophy again.

 

- Trade desk starts tasting sweet return from marketing and customer care operation. Expansion to new markets, doing business with new but trusted clients, trading new commodities, new specifications, and new contract terms is always a challenge but rewards as well.

 

- Not against our philosophy of neat organization, we keep employing and reinforce our current team for development. Our team works well in teamwork spirit and smooth coordination makes our workload at ease. Salary, bonus, social welfare is above average.

 

- Thank to increased volume of trade, we are now an about 500 billion VND turnover exporter and net profit is on a level that makes our shareholders happy. We are proud of giving them and our staff such pleasure in this chaotic year.

 

In 2015, besides Europe and Middle East as current aces, we target to Australia, China and South America markets.

 

Our view is bullish to coffee, neutral to rubber and conservative to spices because of risk.

 

Trading volume of coffee is set to increase 250%, natural rubber 200% and marginal increase for spices. Besides those we also aim to other commodities such as wheat, MBM and dairy products.

 

Doing so, we plan to increase our marketing budget about 50% and our workforce about 15-20%. Funds are well reserved for risk, HR development and marketing thank to generous decision from shareholders.

 

More agent and representative agreements will be signed for our expansion with reasonable terms in order to optimize each other’s advantages.

 

We also think of having more assets, such as warehouse or processing facilities to serve our trade but it may take times.

 

We hold our logistic operation at this level but improve quality while keeping low profile with futures brokerage.

 

We set dividend a lit bit higher than industry target but on practical basic, around 20-25%.

 

Time flies and we will say Goodbye to the 2014 very soon. It is also moment for us to express our sincere gratefulness to ACC team that your bee-like works and loyalty is robust foundation for our development. Similar thanks are to our Bankers, especially the BIDV, local, foreign Customers, Agents, Advisers, and Partners whose support and cooperation are wings for ACC to fly high and far.


Trang: 1/1:

No

Specifications

Quant.
(mts)

Packing

Ship

Price (USD/MT)

1

Vietnam robusta coffee grade 2

5% black & broken

96.0

in bags

Aug-17

Liffe Nov, 2017 -30      OR 2,100

2

Vietnam robusta coffee grade 1, scr.16

2% black & broken

96.0

in bags

Aug-17

Liffe Nov, 2017 +15    OR 2,145

3

Vietnam robusta coffee grade 1, scr.18

2% black & broken

96.0

in bags

Aug-17

Liffe Nov, 2017 +30  OR 2,160

4

Vietnam robusta coffee grade 1, scr.16

0.1% black

96.0

in bags

Aug-17

Liffe Nov, 2017 +70  OR 2,200

5

Vietnam robusta coffee grade 1, scr.18

0.1% black

96.0

in bags

Aug-17

Liffe Nov, 2017 +85  OR 2,215

6

Vietnam robusta coffee grade 1, scr.16

Wet polished

96.0

in bags

Aug-17

Liffe Nov, 2017 +125 OR 2,255

7

Vietnam robusta coffee grade 1, scr.18

Wet polished

96.0

in bags

Aug-17

Liffe Nov, 2017 +140 OR 2,270

Our offers are based on the following terms and conditions:                                                   

-     Basic: FOB Vietnam main ports.                                                                       

-     Payment terms: by L/C at sight or negotiable

-     Package: standard

-     Offers are subject cargo unsold and our final confirmation

-     The fix price change according to the time.                              

 We thank you for your attention and expect to do business with you

No

Specifications

Quantity

Package

Ship

Price

Producer

(MTS)

(USD)

1

SVR CV50

40.32

SW

Aug/Sep-17

1,770.0

VRG

2

SVR CV60

80.64

SW

Aug/Sep-17

1,760.0

VRG

3

SVR 3L

38.40 or 40.32

SW

Aug/Sep-17

1,700.0

VRG

4

SVR 3L

38.40 or 40.32

SW

Sep-17

1,660.0

Private

5

Latex HA

43.00

In bulk

Sep-17

1,150.0

Private

6

Latex LA

43.00

In bulk

Sep-17

1,165.0

Private

Our offers are based on the following terms and conditions:                                                              

-    Basic: FOB Vietnam main ports                           

-    Payment terms: by L/C at sight or negotiable

-    Package: standard                                                                                               

-    THC, ENS fee and extra fees (if any) at loading port for Buyer’s account

-   Offers are subject cargo unsold and our final confirmation                            

We thank you for your attention and expect to do business with you

No

Specifications

Quantity

Package

Ship

Price

(MTS)

(USD)

1

Black Pepper (FAQ, 500g/l)

13.5

in bags

Jun -16

8,190.0

 Our offers are based on the following terms and conditions:

-    Basic: FOB Vietnam main ports.

-    Payment terms: 30% in advance / 70% upon B/L copy receipt

-    Package: standard

-    Offers are subject cargo unsold and our final confirmation

 We thank you for your attention and expect to do business with you.