Coffee deliveries from farms in Indonesia, the world’s third-biggest robusta grower, tumbled 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 2,500 to 3,000 metric tons this week, the Winterthur, Switzerland-based trader said in a report e-mailed today. That compares with 26,000 tons last week. Indonesia is harvesting its 2013-14 crop that started in April and production will fall 12 percent to 9.2 million bags, the U.S. Department of Agriculture estimates. Eid is the festival that marks the end of the Muslim fasting month of Ramadan.
“Business is basically at a standstill as nearly all exporters are closed due to the Eid-ul-Fitr holiday,” Volcafe wrote in a report e-mailed today. “Wet weather persists, causing quality problems.”
Scattered showers and thunderstorms will form throughout northern Indonesia from today to Aug. 11, AccuWeather said in a report today. Amounts will vary from 0.2 inch to 0.6 inch, with local downpours of 1 inch to 2 inches along the coast of Sumatra and in parts of Borneo, the forecaster said. Indonesia’s main coffee growing region is southern Sumatra.
Buyers of coffee from Indonesia for shipment in September and October were paying a premium of $110 a ton over the futures on the NYSE Liffe exchange in London, according to Volcafe. That compares with $100 last week, data from the trader showed.
In Vietnam, the world’s leading robusta grower, demand is increasing and it’s cheaper to buy coffee on NYSE Liffe than from local farmers, Volcafe said. Vietnamese beans for shipment in September and October were at a premium of $90 a ton to the exchange price, unchanged from last week, the trader said.
In India, Asia’s third-biggest coffee grower, coffee was offered for sale at cheaper prices as the rupee slid. India’s currency, which has slumped 12 percent against the U.S. dollar in the past six months, fell to a record low of 61.8050 on Aug. 6. The currency is the second worst performer among 24 counterparts in emerging markets.
Robusta coffee for delivery in November was 1.8 percent higher at $1,943 a ton by 4:17 p.m. in London. Prices reached $1,943 a ton, the highest in two weeks.
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