Asian Coffee Prices Sharply Higher On Thin Supplies
Dow Jones

KUALA LUMPUR - Coffee prices in Asia rose sharply in the week to
Friday on the back of thinning supplies and concerns over poor harvest in
Indonesia due to persistent rains, coffee traders in the region said.
In major robusta supplier Vietnam, grade 2 with 5% black and broken beans was
offered at a premium of around $80 a metric ton to London's September contract,
compared with a premium of about $30/ton last week.
"Stocks are very thin...warehouses in the country have very little left...I'd
say less than 200,000 tons," said a trading executive with Simexco Daklak, one
of Vietnam's top coffee exporters.
Inventories have dwindled in Vietnam as the country is between harvests, with
the next one due to start from October-November in the Central Highlands coffee
region. Low stocks will keep prices on the high side until fresh arrivals.
Traders expect the new crop to reach around 19.5 million 60-kilogram bags due
to favorable weather and the adoption of better farming techniques.
Arabica coffee for September delivery on the Intercontinental Exchange
settled at $2.6135 a pound Thursday, down 2% from a week earlier.
September robusta on the London International Financial Futures Exchange
settled lower, falling 0.8% over the week to close Thursday at $2,441/ton,
pressured by Brazil's harvest as fears over frost dissipated.
Indonesian prices are also up, with sellers offering beans at a premium of
more than $150/ton to London's September contract, compared with $100/ton last
week, said a trading executive in Singapore.
"The crop isn't fantastic, due to continuous rainfall," said a coffee trader
in Lampung. "It is difficult to source beans currently."
In India, Asia's third-largest producer, high quality arabica plantation bean
prices were a tad higher at $6,380/ton, while robusta cherry AB beans are
quoted at $2,750/ton, up from $2,650/ton a week earlier, an India-based dealer
said.
Coffee exports from India during the Jan. 1-June 16 period were estimated at
204,683 tons, up from 141,586 tons a year ago, data from state-linked Coffee
Board showed.
Italy, Germany and Belgium were the top three buyers of India's arabica and
robusta beans, the board said.