Tuesday, April 22, 2008; Posted: 12:08 AM
The most traded July contract on the London Euronext.liffe exchange, which traders in Asia are now pricing against, ended Monday down $29 at $2,270 a metric ton.
Growers and exporters in Vietnam are now selling stocks at a steady rate ahead of the arrival of the Indonesian coffee harvest. It is estimated around 15% of the harvest, or around 150,000 tons, is left unsold.
"Banks are raising interest rates, so it's harder for growers and exporters to finance their loans and hold on to coffee," said a trader based in Singapore.
Free-on-board offers for robusta grade 2, 5% black and broken beans for May to June shipment were quoted around $2,100/ton, compared with $2,108/ton the previous week.
In Indonesia, Asia's second-largest producer of robusta coffee, crop arrivals are stable around 1,500 tons a week. Traders expect the crop to peak around end-April, with arrivals of around 4,000 tons a week. It is estimated 10%-15% of the crop has been harvested.
Indonesian robusta grade 4, up to 80 defects, was quoted at $2,145/ton for immediate shipment, FOB, down from $2,158/ton the previous week.
-By Tor Ching Li, Dow Jones Newswires; 65 6415 4086; chingli.tor@dowjones.com
(END) Dow Jones Newswires
04-22-08 0008ET
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