Coffee market awaits traders' return home<\/p>\n
SINGAPORE (Reuters): Indonesia's coffee market has come to a
\nstop since ethnic Chinese started to flee after riots last week,
\ntraders said.<\/p>\n
\"There is nobody you can contact in Indonesia. Most coffee
\ntraders in Indonesia are Chinese and they have all left,\" said
\none Bangkok-based trader.<\/p>\n
Another trader joked that business could be done in Singapore
\nas many Chinese Indonesians were now staying at hotels in the
\ncity state.<\/p>\n
\"There is only one problem -- how to ship supplies? Nobody
\nknows what's going on there and nothing is within anyone's
\ncontrol,\" said the trader with a Singapore trading house.<\/p>\n
Indonesia is a leading producer of robusta coffee. Robusta
\nprices have been surging since March due to poor African harvests
\nand a lack of Vietnamese selling.<\/p>\n
The Indonesian harvest, usually in April, was delayed by one
\nmonth this year because of an El Nio-linked drought last year.<\/p>\n
Small lots of Indonesian coffee started to arrive in the
\nmarket in early May, but recent riots coupled with a shortage of
\ncontainers kept the market extremely quiet, traders said.<\/p>\n
\"We can only hope the situation in Indonesia can stabilizes as
\nsoon as possible before the main crop comes in late May and early
\nJune,\" said one Singapore trader.<\/p>\n
On Wednesday, Indonesian Moslem leader Amien Rais called off
\nplans for a mass \"people power\" demonstration and students
\noccupying the Indonesian parliament said they had abandoned plans
\nto march on the presidential palace to demand the ouster of
\nPresident Soeharto.<\/p>\n
\"It looks quiet now but we still have to wait to see whether
\nChinese merchants will be convinced that it's safe to go home,\"
\nsaid one trader.<\/p>\n
A trader with a European coffee trading house said there had
\nbeen no offers from Indonesia since last week and major trading
\nhouses also stepped out of the market.<\/p>\n
\"They are not giving prices and we are not asking. The risks
\nare too high to do business with Indonesia,\" the trader said.<\/p>\n
In Vietnam, the other main coffee producer in Asia, sales
\nslowed down after active trade last week, traders said.<\/p>\n
\"They sold quite a lot last week when London levels were high.
\nNow they are holding back again,\" said one trader.<\/p>\n
Coffee stocks in Vietnam are estimated by the trade at between
\n40,000 and 60,000 tons.<\/p>\n
\"As there is no way to get Indonesian supplies, Vietnamese
\nexporters are still asking for premiums. But the high prices
\ncannot attract buyers,\" the trader said.<\/p>\n
Vietnamese coffee was offered at between US$1,920 and $1,960 a
\nton. In London on Tuesday, benchmark July closed $45 lower at
\n$1,910 a ton amid profit-taking in the wake of the Indonesian
\ncrisis.<\/p>\n
One trader said Indonesian coffee prices were at around London
\nlevels but most traders said there were no quotes for Indonesian
\ncoffee.<\/p>\n
\"The price doesn't mean anything. It's just talk but not
\ntrade. No shipowners want to go to Indonesia at the moment,\" said
\none trader.<\/p>\n
Differentials of key Asian coffee origins, basis the July
\nrobusta futures contract in London:<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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