Sept. 2 (Bloomberg) -- Coffee shipments from Indonesia’s southern Sumatra, the main growing region in the world’s third- largest robusta producer, fell the most in two months in August as Eid holidays slowed trade.
Exports of beans and instant coffee contracted 42 percent to 32,263 metric tons last month from a four-year high of 55,709 tons in July, the Lampung Province Trade and Industry Office said in a statement today. That’s the steepest decline since June and compares with August 2012 sales of 23,246 tons.
Robusta has gained 4.4 percent in London from a 32-month low in June as farmers in Vietnam, the top grower, curbed sales to boost prices. Inventories certified by NYSE Liffe will tumble 34 percent to 52,000 tons by the end of 2013, the lowest since May 2000, because of Indonesian rain and reduced Vietnam supplies, the average of 10 trader estimates in Bloomberg survey published Aug. 27 showed.
“The main reason for drop in exports is the Eid al-Fitr holiday” Moelyono Soesilo, purchasing and marketing manager at trader PT Taman Delta Indonesia, said in a text message today. “Weather has improved towards the normal dry season. If it could last until October, this may help exports and we may see good harvest next year.”
Muslims in Indonesia celebrated the Eid festival on Aug. 8 this year with a week-long holiday, delaying supplies of dried beans for exports from plantations. Shipments jumped 80 percent to 181,999 tons in the eight months through August, according to Bloomberg calculations.
Robusta futures for delivery in November rose 0.9 percent to $1,779 a ton on the NYSE Liffe on Aug. 30. The premium for delivery of Indonesian beans in September and October was unchanged at about $60 to $80 a ton above prices in London last week, Soesilo said.
Farmers have picked about 85 percent of beans in Lampung, he said. Southern Sumatra normally accounts for 75 percent of supplies from Indonesia, where the harvest began a month later than usual in May this year because of the wet weather.
Indonesian deliveries to warehouses were unchanged at 24,000 tons last week from a week earlier as the harvest is nearing the end and bean quality is lower than it was in the peak season in July and August, Volcafe Ltd. said Aug. 30.
--Editors: Thomas Kutty Abraham, Jake Lloyd-Smith