Indonesia’s Coffee Deliveries Seen Surging on Drier Conditions

Coffee deliveries from farms in Indonesia, the third-largest producer of the robusta variety, surged this week because of drier weather, Volcafe said.

Beans delivered to Lampung, where the country’s main coffee export port is located, surged to about 16,000 metric tons this week, “much higher than the last weeks,” the Winterthur, Switzerland-based coffee unit of commodities trader ED&F Man Holdings Ltd. said in a report e-mailed today. That compares with daily deliveries of about 1,400 tons last week.

Growing regions in Indonesia got lighter rains this week, MDA Weather Services in Gaithersburg, Maryland, said in report e-mailed yesterday. Rain fell in most growing regions last week, with amounts ranging from 0.25 inch to 1.5 inch in Sumatra, where the nation’s main robusta-growing region is located.

“The good flow is due to the drier weather since last weekend,” Volcafe said in the report. The local industry and exporters are “taking advantage and covering shorts.”

Local prices are at 17,000 rupiah ($1.70) to 18,200 rupiah a kilogram (2.2 pounds), with “good volume” traded at 17,800 rupiah, the trader said. Beans for shipment in July and August were at a premium of $230 a ton to the price on the NYSE Liffe exchange, unchanged from a week earlier, Volcafe data showed.

Farmers are set to increase sales from now until the Muslim holiday of Eid, which marks the end of the fasting month of Ramadan in August, according to Volcafe. Deliveries from farms usually increase before the start of Ramadan and farmers boost sales before Eid “to pay for the celebrations and the school fees of their children,” the trader said.

In Vietnam, the world’s biggest robusta grower, beans for shipment in July and August were at a premium of $140 a ton to the exchange price, Volcafe data showed. That’s down from $160 a ton last week, according to the report.

Robusta coffee for delivery in September was unchanged at $1,745 a ton by 1:35 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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