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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