Asian coffee supplies are likely to rise in coming weeks as Indonesia steps up harvesting, but they may not be enough to fill a global shortfall that has pushed prices to nine-year highs.
Vietnam, the world's largest robusta producer, has little to offer, while in Indonesia, domestic consumption is expanding as output is stagnating, regional traders said on Monday. "Local consumption has increased and there are a lot of instant coffee manufacturers in Indonesia who are buying at very high prices," a trader said from Jakarta.
"So for export, the price is not as attractive as before." London robusta coffee futures ended slightly higher on Friday, boosted by speculative and roaster buying as the market showed signs of resuming its upward trend after a bout of profit taking, dealers said.
Benchmark September finished $7 higher at $1,875 a tonne. The contract peaked at a nine-year high for a second position of $1,940 on Tuesday before falling on profit taking.
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