Indonesian robusta coffee prices fell this week on easing demand and as a trickle of supplies did little to entice buying interest. Prices of robusta beans collected from merchants fell to 15,400-16,300 rupiah ($1.66-$1.75) a kg from 15,500-17,000 last week.
"Coffee futures have been moving in a narrow range this week," said a dealer in Bandar Lampung, the provincial capital of Lampung, one of Indonesia's key coffee-growing areas. "Also demand is slow. We haven't heard from local roasters in Java. Some exporters did buy because they're afraid supplies may run out soon."
The benchmark January contract for London robusta coffee futures ended down $11 at $1,891 per tonne on Thursday and it was also lower than last week's close at $1,928 a tonne. Coffee bean supplies in Lampung are declining as the main harvest has long ended and merchants are reluctant to release their beans after selling much of their stocks ahead off the Muslim Eid-ul-Fitr festival in the middle of October.
Arrivals of robusta beans used in making instant coffee from plantations to Bandar Lampung halved this week from around 200 tonnes per day last week. "Merchants still have cash from their last sales. There is no urgency for cash now, maybe next year for the new school term," said another dealer in Lampung.
The main coffee harvest in Sumatra runs from March to October. Robusta output from Lampung, South Sumatra and Bengkulu account for 75 percent of Indonesia's coffee bean output. Indonesia robusta grade 4, maximum 80 defects was still offered at between $60-$80 a tonne for March shipment.
Dealers said demand for robusta beans was also slow as buyers turned to northern Sumatra where the main harvest of arabica Sumatra Mandeling was underway. Prices of arabica Sumatra Mandeling known for its fruity and slightly earthy flavour were quoted at 26,500 rupiah a kilogram, easing from 27,000 a kilogram, as supplies were ample with the ongoing harvest.
Exporters offered arabica Sumatra for export steady at $3,200-$3,300 per tonne, free on board Belawan. The main harvest for arabica normally runs from September to February. Aceh and North Sumatra account for 80 percent of Indonesia's output of arabica coffee.