More coffee deals may be on brewing
More coffee deals may be on brewing
SINGAPORE (Reuters): Indonesian farmers have started to offer
more coffee beans as their harvest begins to peak and more deals
could be struck in coming weeks, traders said yesterday.
In Vietnam, another main Asian coffee supplier, traders said
there were still between 20,000 and 30,000 tons of beans for
export, but activities had slowed and the market would stay quiet
until after October, when the next harvesting kicks in.
"Farmers in Indonesia now are more willing to sell than a week
ago as more beans are coming out," said one Singapore-based
trader.
The crop, expected to reach 330,000 tons this year, has been
coming smoothly but recent rains in Indonesia slightly delayed
some deliveries.
"The coffee flow is smaller and slower than we had expected
this year, but overall it's all right and we are seeing steady
sales from the Indonesians," the trader said.
Between 500 and 1,000 tons arrive daily at Indonesia's major
trading center of Bandar Lampung, seen by traders as "normal and
steady" flows, and small lots of Indonesian supplies were heard
done in the past week.
"We will see more activities next week," said one trader at a
European trading house.
Price falls in the West continued to depress levels in Asia,
traders said.
"As London prices are soft, local prices in Indonesia and
Vietnam are also coming down," said a Bangkok-based trader.
In London on Tuesday, benchmark September ended at $1,544,
compared with $1,594 a week ago.
Traders said a shortage of containers, a result of soaring
exports from Asia and slumping imports, might worsen as
Indonesia's harvest peaks later this month.
The harvest is expected to last through September.
"We have slight container problems now but it's not serious.
It will become more difficult to get containers in coming weeks,"
the trader said.
Indonesian supplies were offered at around $130/$160 per ton
under London levels, compared with $150/$200 a week ago.
Vietnam's benchmark grade 2, five percent black and broken
beans were seen by the trade at $90/$130 under, against $110/$140
a week ago.