RI coffee relieved as beans flow<\/p>\n
JAKARTA (Reuters): Indonesian farmers and middlemen have
\nstarted to release coffee stocks on the back of firmer prices,
\nbringing some relief to exporters scrambling for beans to cover
\nnearby commitments, traders said on Monday.<\/p>\n
They said farmers needed the cash and were lured by the
\nstronger prices, driven up by the recent weakening of the rupiah
\nagainst the U.S. dollar.<\/p>\n
They said differentials had also returned to more realistic
\nlevels of US$50-$80 a tonne under London's benchmark futures'
\ncontract.<\/p>\n
For the past two weeks, differentials have been quoted at par
\nto $20 per tonne above London.<\/p>\n
\"The market is not yet normal but at least everybody is
\ntrading at the same range and there are beans to be bought,\" said
\none trader in Bandar Lampung, the provincial capital of the
\ngrowing hub of Lampung.<\/p>\n
LIFFE's robusta benchmark November ended $8 down at $434 a
\ntonne on Friday. January closed $8 down at $447 a tonne.<\/p>\n
Grade four robusta beans were quoted at Rp 3,500 - Rp 3,600
\n(US$0.372) FOB Bandar Lampung on Monday, up from Rp3,400 last
\nweek.<\/p>\n
Local coffee prices almost halved to Rp 2,800 per kilogram in
\nearly September from around Rp 4,800\/kg in July.<\/p>\n
Traders in Sumatra estimate middlemen in the provinces of
\nLampung, South Sumatra and Bengkulu -- which account for 75
\npercent of Indonesia's coffee output -- are still holding around
\n20,000 tons of beans from the last harvest which finished in
\nAugust.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ri-coffee-relieved-as-beans-flow-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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