Indonesia’s Coffee Bean Deliveries Seen Slowing Again on Holiday

Deliveries of coffee from farms in Indonesia, the world’s third-biggest robusta grower, slowed again this week because of the Muslim holiday of Eid, according to Volcafe, a unit of commodities trader ED&F Man Holdings Ltd.

Bean arrivals were about 2,000 to 2,500 metric tons this week, the Winterthur, Switzerland-based trader said in a report e-mailed today. That compares with 9,000 tons last week and 16,000 to 17,000 tons a week earlier, data from the trader showed. Indonesia is harvesting its 2012-13 crop that started in April. Eid marks the end of the fasting month of Ramadan.

“The country came to a standstill due to the Idul Fitry festivities,” Volcafe said in the report, using another term for Eid. “Hardly any business” has been concluded, according to the report.

Indonesian beans for shipment in September and October were at a premium of $40 a ton to the price on the NYSE Liffe exchange in London, Volcafe said. That compares with $50 a ton last week, data from the trader showed.

In Vietnam, the biggest robusta grower, demand slowed as the end of the 2011-12 crop approaches, according to the trader. The 2011-12 season there ends next month and the development of the 2012-13 crop there is “ok,” Volcafe said.

Vietnamese beans for shipment in September and October were at a premium of $25 a ton to the exchange price, down from $50 a ton last week, according to the report.

In India, Asia’s third-biggest producer, domestic demand keeps beans at “expensive premiums,” the trader said.

Robusta coffee for November delivery was unchanged at $2,041 a ton by 12:53 p.m. on NYSE Liffe 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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