Asian coffee prices mostly tad dn; Indonesia harvest near end
31-07-2009

SINGAPORE – Coffee prices in Asia fell slightly in the week to Friday on losses in London futures, with harvesting nearly finished in Indonesia.

The Euronext.liffe September contract settled at $1,490 a metric ton Thursday, down from $1,508/ton a week earlier.

Cash discounts in Indonesia, the world’s second-largest robusta exporter, narrowed to $10-$15, compared with $20-$25 a week earlier.

Lower London futures and the strength of the local currency against the U.S. dollar cut the discounts, while sales remained steady, traders said.

Production this year is estimated around 500,000 tons, said an executive at an international commodities trading house, adding that about 50%-60% of this year’s harvest has already been sold or contracted. In Vietnam, Asia’s biggest coffee exporter, cash premiums were little changed, around $20, and local prices were steady at VND25,000 a kilogram.

“The price was OK, so there was a little bit selling, but actually farmers don’t have many stocks left – only around 5% I guess,” said a trader with a large agricultural commodities trading house.

In India, another major coffee Asian exporter, cash prices remained largely steady.

Robusta cherry AB beans were quoted around $1,675/ton, arabica beans around $4,250/ton.

India’s coffee output is estimated at 290,000 tons for crop year that begins Oct. 1, said Ramesh Rajah, president of the Coffee Exporters Association of India. Output in 2008-09, which was lower than normal due to excessive and unseasonal rains, is estimated at 262,300 tons.

The forecast is 5% lower than the Coffee Board’s earlier estimate for 2009-10 of 306,300 tons, due to uneven rainfall distribution, he said.

Asian coffee prices mostly tad dn; Indonesia harvest near end
31-07-2009

SINGAPORE – Coffee prices in Asia fell slightly in the week to Friday on losses in London futures, with harvesting nearly finished in Indonesia.

The Euronext.liffe September contract settled at $1,490 a metric ton Thursday, down from $1,508/ton a week earlier.

Cash discounts in Indonesia, the world’s second-largest robusta exporter, narrowed to $10-$15, compared with $20-$25 a week earlier.

Lower London futures and the strength of the local currency against the U.S. dollar cut the discounts, while sales remained steady, traders said.

Production this year is estimated around 500,000 tons, said an executive at an international commodities trading house, adding that about 50%-60% of this year’s harvest has already been sold or contracted. In Vietnam, Asia’s biggest coffee exporter, cash premiums were little changed, around $20, and local prices were steady at VND25,000 a kilogram.

“The price was OK, so there was a little bit selling, but actually farmers don’t have many stocks left – only around 5% I guess,” said a trader with a large agricultural commodities trading house.

In India, another major coffee Asian exporter, cash prices remained largely steady.

Robusta cherry AB beans were quoted around $1,675/ton, arabica beans around $4,250/ton.

India’s coffee output is estimated at 290,000 tons for crop year that begins Oct. 1, said Ramesh Rajah, president of the Coffee Exporters Association of India. Output in 2008-09, which was lower than normal due to excessive and unseasonal rains, is estimated at 262,300 tons.

The forecast is 5% lower than the Coffee Board’s earlier estimate for 2009-10 of 306,300 tons, due to uneven rainfall distribution, he said.