RI coffee supplies very tight: Traders<\/p>\n
SINGAPORE (Reuter): Indonesian coffee supplies are tight while
\nbusiness for some trading houses who are long on coffee was said
\nto be active, traders said yesterday.<\/p>\n
\"The supplies from Indonesia are terrible,\" a senior trader
\nfor a major coffee house said. \"The arrivals in Lampung are only
\naveraging about 200-300 tons a day as opposed to the normal 800
\nto 1,000 tons. That's exceptionally low.\"<\/p>\n
Traders were divided on the reason behind the tight supplies.
\nOne said strong winds and rain which stripped coffee trees of
\ntheir flowers last year was behind the fall in production.<\/p>\n
\"The crop is down by about 20-25 percent,\" the dealer said,
\nadding the carryover this year for Indonesian coffee is expected
\nto reach only about 60,000 to 70,000 tons against the estimated
\n100,000 tons last year.<\/p>\n
Another senior trader said there were also rumors that a
\nshipment of about 30,000 to 40,000 tons of robusta beans to a
\nNorth African country temporarily squeezed supplies.<\/p>\n
\"The situation should clear up by the end of the month,\" the
\ndealer said.<\/p>\n
\"I've heard rumors of defaults. Fortunately, it's the summer
\nholiday season so it's not showing up in the market,\" another
\ntrader explained.<\/p>\n
Most dealers said the Asian coffee business was quiet, except
\nfor some dealing houses who reported that roasters who were short
\nare coming to them to book their purchases for forward delivery.<\/p>\n
\"Some of these houses are coming to us because they're very
\nshort of coffee. We've been very conservative in selling but
\npretty aggressive in buying,\" one trader said. \"There are trade
\nhouses and roasters who need to cover now.\"<\/p>\n
The rest of the coffee business, though, was quiet.<\/p>\n
\"The general coffee trade is quiet because of the summer
\nholiday season in the United States and Europe. It will probably
\nremain this way for quite a while,\" one dealer said.<\/p>\n
Indonesia's key Grade 4 coffee, 80 defects, was quoted by the
\ntrade at around US$1,635\/85 a ton FOB Lampung against about
\n$1,650 a ton on the same basis last week.<\/p>\n
Price indications for Vietnam's Grade 2 coffee, 8.0 percent
\nblack and broken, ranged from $1,535-$1,705 a ton FOB Saigon.<\/p>\n
No deals have been reported however as very little coffee is
\nsaid to remain in the country, dealers said.<\/p>\n
\"People are waiting for the next harvest in November. There's
\nnothing moving in that market,\" one said.<\/p>\n
Regional coffee dealers expect the London robusta market to
\nopen slightly higher later on Wednesday in seasonally dull trade.<\/p>\n
\"By the numbers, it's due $60 up. I'm calling it $30 up,\" a
\ntrader said.<\/p>\n
Another dealer pegged London to move \"about $50 higher.\"<\/p>\n
The September robusta contract in London moved largely
\nsideways on Tuesday before ending the day $8 up at $1,785 a ton
\nafter bouncing between $1,822 and $1,762.<\/p>\n
The robusta coffee contract in the Singapore Commodity
\nExchange (SICOM) was untraded anew on Tuesday.<\/p>\n
The July contract was indicated at $1,610 a ton while the
\nSeptember contract settled at $1,603 a tone.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ri-coffee-supplies-very-tight-traders-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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