Shortage, new demands boil Asian coffee prices<\/p>\n
KUALA LUMPUR (Reuter): Asian coffee bean prices are on the
\nboil again as domestic demand in Indonesia heats up, world supply
\nof robusta beans tightens and the market awaits the arrival of
\nthe new Vietnamese crop, regional traders and analysts said this
\nweek.<\/p>\n
In Indonesia, the world's third-largest producer of mainly
\nrobusta beans, the harvest is about 75 percent over, while the
\nnew crop from Vietnam, another key producer, is expected to come
\non stream by the end of the month, they said.<\/p>\n
Supplies have shrunk in Indonesia where a local exporter with
\na contract to supply Algeria is snapping up domestic beans at
\npremium prices, a local trader with a European firm said.<\/p>\n
\"The Prasida group has been paying premium prices in some
\nlocations to secure supplies for export to Algeria and this is
\ndriving up prices and affecting supply,\" said the trader.<\/p>\n
One grade of Indonesian robusta coffee is being offered at
\naround US$3,700 to $3,800 a ton, up by about $300 to $400 a ton
\nfrom late last month, traders said.<\/p>\n
The Indonesian trader estimated that up to 190,000 tons had
\nalready been sold from an anticipated national harvest of around
\n320,000 tons this year.<\/p>\n
\"Local consumption is about 100,000 tons and that would leave
\nus only about 40,000 tons, plus 20,000 tons carry over from last
\nyear for sale to the world market,\" he said.<\/p>\n
Shortage<\/p>\n
A global shortage of robusta beans, with coffee auctions in
\nBrazil on hold, has boosted London coffee futures. November
\nfutures hit a two-month high of $3,885 a ton on Monday.<\/p>\n
In Vietnam, the imposition on Sept. 1 of an extra 20 percent
\ntax levied on export prices has already driven up bean prices
\nthere, traders said.<\/p>\n
Vietnamese prices were quoted at about $3,200 to $3,300 a
\nton last week, but Singapore traders said prices had jumped to
\nabout $3,500 to $3,600 now on the tax news.<\/p>\n
But there is not much coffee to sell until the new crop
\nharvest begins at the end of September, traders said.<\/p>\n
\"Everybody is awaiting the arrival of the Vietnamese coffee
\ncrop to help ease the tight Asian and the general robusta
\nsituation,\" said a Singapore trader.<\/p>\n
With global prices about four times higher than at the
\nbeginning of this year, European and American coffee
\nmanufacturers, called roasters, are having a tough time
\nreplenishing stocks.<\/p>\n
\"The winter season is coming soon and roasters will start to
\nincrease the pace of their activity. With coffee prices rising
\nand supplies being tight, they have a dilemma on their hands
\nnow,\" said a trader.<\/p>\n
Not much relief is coming from India, another major Asian
\nproducer.<\/p>\n
The United Planter's Association of Southern India said it
\nexpected only a slight increase in coffee bean production in the
\n1994-95 season that ends next September.<\/p>\n
It put the new harvest at 180,000 tons against 170,000 tons in
\nthe 1993-94 season.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/shortage-new-demands-boil-asian-coffee-prices-1447893297",
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