RI coffee sales steady: Dealers

RI coffee sales steady: Dealers

SINGAPORE (Reuter): Indonesian robusta coffee sales were seen proceeding at a steady pace, but the rest of the Southeast Asian coffee market remained mired in sleepy conditions, dealers said yesterday.

"Indonesia is selling at a good pace," a dealer for a European commodity firm said. "There's been quite a lot of forward selling by the exporters."

Dealers estimate about 100,000 tons of the Indonesian crop has already been sold out of total exports this year that are tipped to reach around 230,000-270,000 tons.

"The only time you'll find out is when you walk people into the jungle. I still think its down 20 percent, maximum," a veteran coffee trader said.

Prices of Indonesia's Grade 4 coffee, 80 defects, was seen by the trade at US$1,350-$1,400 a ton FOB Lampung, little changed from last week's quote of $1,350-$1,370 a ton.

The trade shrugged off the looming 48-hour strike by Brazilian stevedores beginning on Friday and were skeptical about the impact of another strike at the key port of Santos.

"These strikes, they come and they go. If these strikes were to last two to three weeks, then it may have an impact," a European dealer said.

The rest of the regional coffee market was quiet with Vietnam practically out after the conclusion of its harvest.

Dealers said about 40,000-60,000 tons of coffee remain in Vietnam out of a total crop of around 250,000-270,000 tons.

"I think Vietnam's over. It's hard to say how much coffee they have left, but they're basically waiting now for the next harvest in November," one said.

Prices of Vietnam's Grade 2 coffee, 8.0 percent black and broken, was seen by the trade at $1,325-$1,400 a ton FOB Saigon against last week's quote of $1,340-$1,350.

Dealers said there were also some delays in transporting the robusta crop from Papua New Guinea, but that the entire crop of 60,000 tons will eventually reach the country's customers. Most of the coffee is bought by Germany and Australia.

The trade was divided on how the London robusta coffee market would open later yesterday although one dealer said the threat of a strike in Brazil may be used by players in New York arabica futures "to move the market up."

One trader said London is due unchanged while another said "it is due $100 down."

Trading in the robusta coffee contract in the Singapore Commodity Exchange (SICOM) reached a meager 300 lots on Tuesday.

The 150 lots of the July contract was settled at $1,460 a ton and the remaining 150 lots of the September contract finished at $1,453 a ton, SICOM said.