Indonesian coffee exports may fall to 260,000 tons<\/p>\n
SINGAPORE (Reuter): Indonesia's robusta coffee exports in 1997
\nwill probably fall 10 to 20 percent to around 260,000-285,000
\ntons because of heavy winds and rain which pounded its coffee
\nfarms, regional traders said yesterday.<\/p>\n
Another major factor for the export dip is increasing domestic
\nconsumption among Indonesia's 200 million people, the dealers
\nsaid. Exports last year were more than 320,000 tons.<\/p>\n
"Maximum, I believe Indonesian coffee exports should be
\nbetween 270,000 to 285,000 tons. Domestic consumption has also
\nbeen eating into exports," a senior dealer for a European
\ncommodity house told Reuters.<\/p>\n
"I think exports will reach only 260,000 tons," a coffee
\ndealer for U.S. commodity house said.<\/p>\n
Heavy rains and strong winds in June and July last year
\nstripped many trees of their flowers and hindered the flowering
\nof other, traders said.<\/p>\n
Coffee bean supplies in Indonesia are rising although the main
\nharvest season is still about eight weeks away.<\/p>\n
"The new crop is coming up in the market," a dealer said.<\/p>\n
Prices of Indonesia's benchmark Grade 4 coffee, 80 defects,
\nwas seen by the trade at around US$1,400-$1,500 a ton FOB Lampung
\nport, unchanged from last week.<\/p>\n
Regional dealers were also closely watching the recent turmoil
\nin Papua New Guinea and said they hoped the crisis would be over
\nbefore the bulk of the crop is harvested.<\/p>\n
"The real weight of the crop in Papua New Guinea comes in
\nApril to May," one trader said, adding its would be made up of
\n55,000 tons of arabica beans while the remaining 5,000 tons would
\nbe robusta.<\/p>\n
Australia and Germany account for 70 percent of the country's
\ncoffee sales. Papua New Guinea produces about one percent of the
\nworld's coffee.<\/p>\n
Regional business in Asia has slowed down ahead of the Easter
\nholidays starting on Friday with many exporters sidelined in the
\nface of volatility in the coffee markets of London and New York.
\n"This kind of market will drive you crazy," a U.S. trader declared.<\/p>\n
Coffee traders said the robusta futures market in London
\nshould open $200-$250 higher after prices bounced all over the
\nplace on Tuesday.<\/p>\n
The key May LIFFE futures contract sank to an intra-day low of
\n$1,515 but soon recovered after New York went higher and closed
\n$26 up on the day at $1,567.<\/p>\n
"In my 17 years in the coffee business, I've never seen a
\nmarket like this. It's like the Dow leaping 1,200 points in a
\nday," one European trader said.<\/p>\n
In Vietnam, trading has slowed to a crawl.<\/p>\n
"Today is probably the last day of action before Easter," a
\ndealer for a European trading house said, adding "there are no
\nmore problems with congestion in Ho Chi Minh city."<\/p>\n
Prices of Vietnam's Grade 2 coffee, 8.0 percent black and
\nbroken, was quoted by the trade at $1,350-$1,400 a ton FOB Saigon
\nport, slightly easier against last week's $1,350-$1,420.<\/p>\n
Vietnamese exporters probably still have about 60,000 to
\n70,000 tons of robusta coffee in their warehouses. The volume of
\ncoffee exported has already reached an estimated 200,000 to
\n210,000 tons, traders said.<\/p>\n
"It's slow in Vietnam. I think we're down to the last 20
\npercent of the crop," a dealer said.<\/p>\n
A meager 453 lots were traded on Tuesday in the robusta coffee
\ncontract of the Singapore Commodity Exchange (SICOM). The
\ncontract was untraded on Monday.<\/p>\n
The 153 lots of the May contract was settled at $1,432 a ton,
\nthe 150 lots in the July contract finished at $1,427 a ton while
\nthe September contract closed at $1,420 a ton, SICOM said.<\/p>",
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