Jakarta, Nov 29: A stable rupiah has dampened sentiment in the Indonesian coffee market while foreign enquiries have started to slow down because of dwindling stocks, traders said."There are not many beans left from the last crop. I don't have much to do these days because trading is very slow," said one trader in Bengkulu, Sumatra. "Enquiries are very slow and a stable rupiah continues to dampen the sentiment." Farmers are also holding back stocks because they think the current prices are too low," he said.'
Traders in Bandar Lampung, the provincial capital of the growing area of Lampung, Sumatra, said grade-four robusta beans were stable at 9,500-10,000 rupiah/kg. Fob prices hovered at $1,400/1,450/tonne against 1,430 last week.
The Bengkulu trader said foreign buyers had turned to Vietnam for beans because they knew stocks had dwindled in Indonesia.
Lampung, in South Sumatra, and Bengkulu, are the country's main coffee growing areas.
"The market does not see any fresh leads. Sunday's riots inJakarta did not give any impact to the market either because the rupiah remains stable," said the trader.
The rupiah was quoted at 7,400/7,500 against the US dollar in late trading.Police on Monday found eight more bodies after the violent ethnic and religious clashes in capital Jakarta on Sunday, witnesses said.The finding brings to at least 14 killed in the clashes which were the latest in more than two weeks of violence in the capital of 10 million people.
Several buildings were torched and looted during thedisturbances on Sunday.Some traders earlier estimated 10-15 percent of Indonesia'slast crop remained unsold and that stocks might be rolled over to the next crop, expected in March.
The coffee harvest, estimated at 330,000 tonnes in 1998,started in May and ended in September.
Traders said Indonesia exported 300,000 tonnes of coffee inthe 1997/98 coffee year (Oct/Sept).
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.