Hopes for next year's coffee crop fading

Hopes for next year's coffee crop fading

SINGAPORE (Reuters): No rain fell on Indonesia's parched
coffee belt over the past 24 hours and hopes for the 1998 crop
are fading fast, dealers said yesterday.

"There were no rains overnight," a veteran coffee dealer said.
"I think the crop's beyond saving. I don't give it much hope
anymore."

Traders said the drought spawned by the El Nino weather
anomaly had devastated coffee trees in the key growing areas of
Lampung, Bengkulu and South Sumatra. Cherries in lowland areas
are shriveling up. The highland farms are in better shape.

"There was no report of rain overnight," another dealer said.
"The situation is the same. It's dry."

Most of the trade estimates production in 1998 will probably
reach only 300,000-320,000 tons against a normal output of
450,000 tons.

One trader said Indonesia may have to import coffee because of
tight supplies with the next harvest not expected to come in
until May or June. In a normal year, the harvest usually gets
underway in middle to late April

"Their local consumption is, say, 100,000 tons. Some say
120,000. Even if they produce 350,000, that would leave only
250,000 tons for exports. They'll have to import," the trader
said.

Indonesia's long-term contracts probably add up to more than
250,000 tons, traders said.

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