Volcafe Says Indonesian Growers Harvested 65% of 2012-13 Crop
Coffee growers in Indonesia, the third-biggest robusta producer, harvested almost 65 percent of the 2012-13 crop under way there, according to Volcafe, the coffee unit of commodities trader ED&F Man Holdings Ltd.
Indonesian output will climb to 9.7 million bags in the season that started in April, the U.S. Department of Agriculture estimates. That’s up from 8.3 million bags a year earlier. A bag of coffee weighs 60 kilograms (132 pounds).
The “harvest is in full swing” and daily coffee arrivals have improved, the Winterthur, Switzerland-based trader said in a weekly report to clients e-mailed today. “Roasters’ demand for robusta has been firm,” it added.
Bean arrivals at Indonesian ports were 12,750 metric tons to 14,000 tons this week, Volcafe said. That’s up from 9,500 tons to 10,500 tons a week earlier, it said in a July 20 report.
Buyers of beans from Indonesia for August and September shipments were paying a premium of $30 a ton to the price on the NYSE Liffe exchange in London, unchanged from last week, data from the trader showed.
In Vietnam, the world’s biggest robusta grower, buyers’ interest in purchasing beans for the season that starts in October is beginning much earlier than usual, the trader said in the report. The weather has been good and beans are developing “well” for the new crop, according to the report.
“When we see that the 26 million-bag current crop was wolfed down by a coffee world hungry for robusta, the sprint to bag some new crop seems understandable,” Volcafe said.
Buyers of Vietnamese beans for shipment in August and September were paying a premium of $40 a ton above the exchange price, unchanged from the previous week, the trader said. Higher prices on NYSE Liffe encouraged selling, it said.
“Local exporters are keen to see bids for August and September shipments in order to clean the warehouse,” Volcafe said. Robusta coffee for September delivery advanced 2 percent to $2,254 a ton by 3:07 p.m. in London.
To contact the reporter on this story: Isis Almeida in London at Ialmeida3@bloomberg.net
To contact the editor responsible for this story: Claudia Carpenter at Ccarpenter2@bloomberg.net.
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