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.