Indonesian robusta exporters are reluctant to lower prices amid short supply, while buyers are awaiting price falls when the harvest begins in April, traders said on Thursday.
Differentials remained wide between buyers and sellers. Offers for spot shipment of grade four, 80 defect robusta beans were unchanged at $710 to $720.
Beans collected from farmers and merchants were offered between 5,350 rupiah ($0.64) and 5,450 rupiah a kg, virtually unchanged from last week.
"Exporters have the bargaining power as supplies are almost non-existent. They're starting to collect beans to lock in profits later," said one trader in Bandar Lampung in Sumatra, home to the country's key robusta growing belt.
Buyers offered $80 to $90 a tonne below the London market, while sellers quoted $50-$60 below. "Beans from the lowlands have started to enter the market, but it's quite thin, we're expecting big volumes later in April," another Bandar Lampung trader said.
Rain continued to soak most coffee plantations on Sumatra, disrupting drying. "It's been raining every afternoon for the past few weeks, and that is likely to affect beans quality, increasing moisture levels and waste," the second trader said, referring to robusta beans.
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