World coffee offtake steady this week<\/p>\n
LONDON (Reuter): Physical coffee offtake was steady this week
\nwith industry focused on new crop Brazilian conillons and
\nIndonesian beans as well as easing differentials.<\/p>\n
"Offers from African robustas were steady and there was quite
\na bit of Ivorian selling, but the brunt of selling came from
\nIndonesia and new crop Brazilian conillons," one trader said
\nyesterday.<\/p>\n
Traders said differentials were softer following weaker
\nfutures, with benchmark July futures down to US$1,945 yesterday
\nfrom $2,000 a ton last week.<\/p>\n
But industry sources said expectations the EU will scrap its
\nduty on all coffee imports -- except from Brazil -- shortly, also
\nweighed down differentials.<\/p>\n
"It seems that from July onwards all coffees into the European
\nUnion will be duty free...except those from Brazil," said one
\nsource.<\/p>\n
Traders said the market expects the EU will soon scrap its
\nduty of four percent per ton CIF on coffee imports, barring those
\nfrom Brazil, which will retain a duty of 1.7 percent.<\/p>\n
If implemented, the agreement will run from June to June 1999,
\nsaid the source.<\/p>\n
Aside from EU duty prospects and easing futures, traders said
\nthe volume of offers from Indonesia was also weighing on
\ndifferentials.<\/p>\n
Indonesian traders said between 800-900 tons of coffee were
\nentering the market daily in the key growing region of southern
\nSumatra, but the volume was still behind main crop arrivals,
\naveraging 1,500-2,000 tons daily.<\/p>\n
Indonesian beans were quoted on a nominal basis at $90-100
\nunder July.<\/p>\n
Trade in Brazilian conillons was also said to be active with
\ndifferentials slightly weaker in anticipation of the Brazilian
\nmain crop. Traders said they were awaiting softer differentials
\nwith the more normal level of exports during May and June.<\/p>\n
Brazilian conillons were said to be offered at $100-$120 under
\nfor July\/August shipment on an FOB basis.<\/p>\n
Nearby Brazilian arabicas, Swedish qualities, were said to be
\noffered at 12 cents over New York's CSCE coffee contract in
\nEurope while in Brazil Swedish qualities were five cents over
\nagainst last week's 8.5 cent premium.<\/p>\n
"But for August shipment you could be looking at a
\ndifferential of seven cents," said one trader.<\/p>\n
Vietnam grade two coffee for May\/June shipment was cited at
\n$100-120 under FOB while Costa Rica (SHB) was quoted at a one to
\ntwo cent premium FOB against New York.<\/p>\n
Industry sources said while roasters were covered on a short-
\nterm basis, they were unfixed on the forwards.<\/p>\n
"Industry is nervous of covering too far in advance. The
\nmarket is still very volatile and could slide when the main
\nBrazilian crop hits the market," said one.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/world-coffee-offtake-steady-this-week-1447893297",
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