Sumatran beans sold at record

SINGAPORE: Indonesian robustas were traded at record premiums of around $500 a tonne to London futures as desperate roasters chased beans, but trading slowed to a trickle in Vietnam ahead of the new season, dealers said on Thursday.

Grade 3 Extra Large Bean robusta changed hands at $550 premiums, while another variety, the widely-traded Grade 4, 80 Defect, hit another record at $500 above the September contract from $400 last week as exporters struggled to get beans.

Premiums in top robusta producer Vietnam were much lower at $200 to $220 against London futures for the Grade 2, 5 percent black and broken variety. .

"Exporters who are short of beans for delivery to their customers have to buy at these levels," said a dealer in Singapore, who trades Indonesian and Vietnamese beans. "People are still struggling to find supply."

Indonesia's coffee exports could fall about a third to 300,000 tonnes in 2011 as supply constraints will lead to tight stocks at the end of the year, the Indonesian Coffee Exporters Association (AEKI) said.

Exporters in the main growing island of Sumatra have turned to their own inventories to meet shipment commitments after erratic weather earlier this year led to an early harvest.

The AEKI said Indonesia's closing stocks at the year-end were estimated at 10,000 tonnes, down from a normal level of 60,000 tonnes as domestic consumption was also rising.

Dealers said high prices in Vietnam also discouraged roasters in Indonesia from importing beans from the neighbouring country ahead of the Eid al-Fitr celebration at the end of August, which marks the end of the fasting month of Ramadan.

"Vietnamese beans used to be traded at discounts to London, but it's not the case anymore. They still want to import beans from Vietnam but the price is not suitable," said the dealer in Singapore.

"Indonesian bean production is getting smaller and smaller, while consumption is getting higher."

A dealer in Sumatra said Grade 3 Extra Large Bean robustas were being offered by exporters at $2,725 a tonne, which means the beans fetch premiums of more than $600 a tonne against the September contract, which ended down $26 at $2,094 per tonne on Wednesday.

Indonesian coffee premiums were expected to stay high next week, but coffee prices in Vietnam could soften as the new crop season approaches.

Vietnam's coffee crop year lasts between October and September, with the next 2011/2012 harvest expected to hit up to 24 million bags, based on foreign traders' estimates.

"I think the market is really slow, and I can't really say if there are trades at around $200 premiums. I don't think anybody wants to buy beans at these kinds of premiums," said a dealer in Hong Kong, who trades Vietnamese coffee.

"Even people who are short will try to get better prices. Next year's crop will be very good, although many exporters are trying to play it down."

Copyright Reuters, 2011

Sumatran beans sold at record

SINGAPORE: Indonesian robustas were traded at record premiums of around $500 a tonne to London futures as desperate roasters chased beans, but trading slowed to a trickle in Vietnam ahead of the new season, dealers said on Thursday.

Grade 3 Extra Large Bean robusta changed hands at $550 premiums, while another variety, the widely-traded Grade 4, 80 Defect, hit another record at $500 above the September contract from $400 last week as exporters struggled to get beans.

Premiums in top robusta producer Vietnam were much lower at $200 to $220 against London futures for the Grade 2, 5 percent black and broken variety. .

"Exporters who are short of beans for delivery to their customers have to buy at these levels," said a dealer in Singapore, who trades Indonesian and Vietnamese beans. "People are still struggling to find supply."

Indonesia's coffee exports could fall about a third to 300,000 tonnes in 2011 as supply constraints will lead to tight stocks at the end of the year, the Indonesian Coffee Exporters Association (AEKI) said.

Exporters in the main growing island of Sumatra have turned to their own inventories to meet shipment commitments after erratic weather earlier this year led to an early harvest.

The AEKI said Indonesia's closing stocks at the year-end were estimated at 10,000 tonnes, down from a normal level of 60,000 tonnes as domestic consumption was also rising.

Dealers said high prices in Vietnam also discouraged roasters in Indonesia from importing beans from the neighbouring country ahead of the Eid al-Fitr celebration at the end of August, which marks the end of the fasting month of Ramadan.

"Vietnamese beans used to be traded at discounts to London, but it's not the case anymore. They still want to import beans from Vietnam but the price is not suitable," said the dealer in Singapore.

"Indonesian bean production is getting smaller and smaller, while consumption is getting higher."

A dealer in Sumatra said Grade 3 Extra Large Bean robustas were being offered by exporters at $2,725 a tonne, which means the beans fetch premiums of more than $600 a tonne against the September contract, which ended down $26 at $2,094 per tonne on Wednesday.

Indonesian coffee premiums were expected to stay high next week, but coffee prices in Vietnam could soften as the new crop season approaches.

Vietnam's coffee crop year lasts between October and September, with the next 2011/2012 harvest expected to hit up to 24 million bags, based on foreign traders' estimates.

"I think the market is really slow, and I can't really say if there are trades at around $200 premiums. I don't think anybody wants to buy beans at these kinds of premiums," said a dealer in Hong Kong, who trades Vietnamese coffee.

"Even people who are short will try to get better prices. Next year's crop will be very good, although many exporters are trying to play it down."

Copyright Reuters, 2011

Normal 0 MicrosoftInternetExplorer4

Sumatran beans sold at record

SINGAPORE: Indonesian robustas were traded at record premiums of around $500 a tonne to London futures as desperate roasters chased beans, but trading slowed to a trickle in Vietnam ahead of the new season, dealers said on Thursday.

Grade 3 Extra Large Bean robusta changed hands at $550 premiums, while another variety, the widely-traded Grade 4, 80 Defect, hit another record at $500 above the September contract from $400 last week as exporters struggled to get beans.

Premiums in top robusta producer Vietnam were much lower at $200 to $220 against London futures for the Grade 2, 5 percent black and broken variety. .

"Exporters who are short of beans for delivery to their customers have to buy at these levels," said a dealer in Singapore, who trades Indonesian and Vietnamese beans. "People are still struggling to find supply."

Indonesia's coffee exports could fall about a third to 300,000 tonnes in 2011 as supply constraints will lead to tight stocks at the end of the year, the Indonesian Coffee Exporters Association (AEKI) said.

Exporters in the main growing island of Sumatra have turned to their own inventories to meet shipment commitments after erratic weather earlier this year led to an early harvest.

The AEKI said Indonesia's closing stocks at the year-end were estimated at 10,000 tonnes, down from a normal level of 60,000 tonnes as domestic consumption was also rising.

Dealers said high prices in Vietnam also discouraged roasters in Indonesia from importing beans from the neighbouring country ahead of the Eid al-Fitr celebration at the end of August, which marks the end of the fasting month of Ramadan.

"Vietnamese beans used to be traded at discounts to London, but it's not the case anymore. They still want to import beans from Vietnam but the price is not suitable," said the dealer in Singapore.

"Indonesian bean production is getting smaller and smaller, while consumption is getting higher."

A dealer in Sumatra said Grade 3 Extra Large Bean robustas were being offered by exporters at $2,725 a tonne, which means the beans fetch premiums of more than $600 a tonne against the September contract, which ended down $26 at $2,094 per tonne on Wednesday.

Indonesian coffee premiums were expected to stay high next week, but coffee prices in Vietnam could soften as the new crop season approaches.

Vietnam's coffee crop year lasts between October and September, with the next 2011/2012 harvest expected to hit up to 24 million bags, based on foreign traders' estimates.

"I think the market is really slow, and I can't really say if there are trades at around $200 premiums. I don't think anybody wants to buy beans at these kinds of premiums," said a dealer in Hong Kong, who trades Vietnamese coffee.

"Even people who are short will try to get better prices. Next year's crop will be very good, although many exporters are trying to play it down."

Copyright Reuters, 2011