Bloomberg News

Volcafe Says Indonesian Coffee Deliveries Slow as Crop Nears End

October 26, 2012

Coffee deliveries from farms in Indonesia, the third-biggest producer of the robusta variety, slowed again this week as the crop approaches an end, according to Volcafe, a unit of ED&F Man Holdings Ltd.

Bean arrivals were 800 to 900 metric tons this week, the Winterthur, Switzerland-based trader said in a weekly report e- mailed today. That compares with 1,000 to 1,200 tons last week and 1,300 to 1,600 tons a week earlier, Volcafe data showed. Indonesia is harvesting its 2012-13 crop that started in April. Output will climb to 9.7 million bags from 8.3 million bags a year earlier, according to data on the website of the U.S. Department of Agriculture.

“Differentials remain steady due to lack of coffee bean availabilities,” Volcafe said in the report, referring to a discount or a premium paid to obtain physical coffee in relation to the price of the commodity traded on exchanges.

Indonesian coffee for November and December shipments is $30 a ton higher than the price on the NYSE Liffe exchange in London, unchanged from last week, the trader said.

In Vietnam, the world’s biggest robusta grower, the weather has been “ideal” for the start of the season, with sunshine helping drying of the first beans picked, Volcafe said. The 2012-13 season there started this month.

The “local market has been lively, with good buying opportunities,” Volcafe said. A stable currency and lending rates are encouraging Vietnamese exporters to sell, it said.

Vietnamese coffee for November and December shipments is $25 a ton below the exchange price, according to the report. The discount increased from $10 a ton a week earlier, data from the trader showed.

“We see the trade covering their December and January shipments and stockpiling in warehouses as well,” it said.

Robusta coffee for January delivery was down 1.1 percent to $2,036 a ton at 3:25 p.m. in London on NYSE Liffe.

To contact the reporter on this story: Isis Almeida in London at

To contact the editor responsible for this story: Claudia Carpenter at

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