[Kabar-indonesia] 5 Commodity Reports: Sumatra's Jan-Aug coffee exports down 23% [+Cocoa; CPO]
JoyoNews at aol.com
JoyoNews at aol.com
Thu Sep 28 15:28:07 MDT 2006
5 Reports:
- Sumatra's Jan-Aug coffee exports
down 23 pct
- Asian Cocoa: Asian Physicals Gain
On Overseas Mkt Strength
- Focus: High Raw Material Costs
Support Rubber Prices
- Indonesian palm oil exports to USA
rise due to new FTA laws
- Indonesia palm oil marginally higher
with Malaysia gains
Sumatra's Jan-Aug coffee exports down 23 pct
JAKARTA, September 28 (Reuters) - Coffee bean exports from Sumatra
island, Indonesia's key coffee-growing belt, fell 22.68 percent in the
first eight months of the year due to lower output, industry data
showed on Thursday.
Coffee bean exports fell to 168,459.6 tonnes in the January to August
period of the year from 217,863.2 tonnes in the same period last year.
August exports alone fell 17.67 percent to 34,113 tonnes, from 41,436
tonnes a year ago.
The beans were sold via Panjang port, in the country's key growing
belt of Lampung province on Sumatra island.
Industry officials have said Indonesia's coffee bean exports were
expected to fall 30 percent to 245,000 tonnes in 2006 as heavy rains
have cut output in the world's fourth-largest producer.
Output is expected to drop 30 percent to 315,000 tonnes from around
450,000 tonnes last year.
Robusta constitutes 85 percent of Indonesia's coffee output, while the
rest is aromatic and high-value arabica. Lampung accounts for
three-quarters of Indonesia's coffee bean output.
Indonesia is the world's third-largest robusta producer after Vietnam
and Brazil.
Following are details of Lampung's exports:
2006 2005 Pct chg
(tonnes) (tonnes) y/y
--------------------------------------------------------------
January 19,694.43 19,052.93 3.13
February 19,587.66 22,589.56 -13.29
March 11,944.15 22,555.49 -47.10
April 10,574.98 19,408.48 -45.51
May 16,551.36 25,024.66 -33.86
June 22,005.65 34,581.58 -36.37
July 33,988.13 33,214.44 2.33
August 34,113.20 41,436.06 -17.67
----------------------------------------------------------------
Total 168,459.56 217,863.20 -22.68
Following are details on Lampung's August exports and destination:
EXPORT Aug-2006 Aug-2005
---------------------------------------------------------------
USA 6,699.02 9,160.40
Germany 6,193.10 9,679.20
Italy 4,122.80 2,062.20
Japan 4,000.51 2,372.24
Algeria 1,466.00 3,045.00
Others 11,631.77 15,117.02
---------------------------------------------------------------
Total 34,113.20 41,436.06
----------------------------------------------------------------------
Asian Cocoa: Asian Physicals Gain On Overseas Mkt Strength
JAKARTA, September 28 (Dow Jones)--Malaysian and Indonesian physical
cocoa prices Thursday were higher in the week to Thursday, driven by
supportive technical factors and strength in key external markets.
Cocoa futures on the New York Board of Trade - a major destination for
Indonesian beans - finished Wednesday with strong gains, driven in
part by strength in outside commodity markets and strike concerns in
Ivory Coast.
The most active December contract finished the day up $13 at
$1,505/ton, after trading between $1,492 and $1,508/ton. The
second-most active March contract ended up $12 at $1,536/ton.
December settled above the 10-day moving average of $1,480/ton and the
20-day moving average of $1,483/ton. December prices have been trading
between $1,460 and $1,540/ton in the past few sessions.
On the London International Financial Futures and Options Exchange,
where many Malaysian beans are sold, December finished up GBP10 at
GBP847/ton, while March settled up GBP11 at GBP866/ton.
Strength in the two primary overseas destinations for Asian cocoa
beans helped push local prices higher, a trader in Singapore said.
Offers for Malaysia's SMC 1B cocoa beans were quoted at MYR5,400 a
metric ton, up from MYR5,200-MYR5,300/ton last week.
Offers for Indonesia's Sulawesi fair-average quality cocoa beans were
quoted at IDR11,600 a kilogram, up from IDR11,300/kg last week.
Supportive technical factors also provided strong support for Asian prices.
"It's mostly currency and fund buying" that is pushing Asian prices
higher, the Singapore-based trader said.
The Indonesian rupiah strengthened last week as market concerns about
possible spillover economic effects of a military coup in Thailand
faded, but weakened early this week as offshore investors took profits
on Indonesian stocks and bonds.
The rupiah ended steady Wednesday as month-end dollar demand erased
earlier gains, closing at IDR9,208, little changed from its close
Tuesday at IDR9,205.
The Malaysian ringgit was also lower late Wednesday against the dollar.
At 0925 GMT, both currencies were slightly weaker against the dollar,
with the dollar trading at MYR3.6860 and IDR9,237 respectively.
Weaker local currencies often boost commodities prices in Asia, as
many commodities are traded in U.S. dollars.
Meanwhile, shipments of cocoa from Indonesia are expected to be
delayed by around four days in late October, as the country's
agricultural sector gears down for the Muslim Idul Fitri holiday.
Agricultural activity in countries with a significant Muslim
population, such as Malaysia and Indonesia, traditionally tails off
around the Idul Fitri holiday, which this year falls around Oct.
24-25.
But such slowdowns are factored into market expectations, traders
said, and are unlikely to be significant bullish factors.
The Indonesian Cocoa Association this week revised down its estimate
of total yield from the country's cocoa mid-crop, saying yield would
likely be below previous forecasts of 200,000 tons, around the same as
last year.
Temperatures have remained higher than optimal for cocoa production,
and, combined with damage by cocoa pod boring moths, have led to
production of smaller than usual cocoa pods in Indonesia, an official
from the association said.
The official didn't give an estimate on what the mid-crop cocoa yield
might be, but a second official added that cocoa trees on Sulawesi
island, Indonesia's key cocoa growing region, are not in "too
terrible" a condition.
Due to inclement weather, the mid-crop would likely only be ready for
harvest in mid-October, rather than at the end of September as
previously forecast, the association added.
The main cocoa harvest on Sulawesi island falls in April, peaks
through May and June, and tapers off in July. The mid-crop is usually
harvested from October through December.
The central, south and southeast provinces of Sulawesi account for 75%
of Indonesia's total cocoa output.
---------------------------------------------------------------
Focus: High Raw Material Costs Support Rubber Prices
By Matthew Walls
SINGAPORE, September 28 (Dow Jones)--High raw material costs in
Indonesia, the world's second largest producer of natural rubber, have
slowed the fall in Indonesia's physical rubber prices, and its
resilience may help support the rubber market in the near-term.
Despite a steep decline in natural rubber prices in Thailand and
Malaysia since July, high latex prices in Indonesia have made rubber
processors there reluctant to reduce processed rubber prices as
quickly, since prices are now near to or below break-even levels,
traders said.
With Indonesian processors less willing to supply rubber at lower
prices, suppliers in Thailand and Malaysia may find their prices
tracking Indonesia's, especially as Indonesia is normally the
lowest-cost major producer in the world.
"There's no bullish factors right now (for futures), but it's not as
bearish (as being made out to be) because of the steadiness of SIR20,"
said the managing director of a Japanese trading house. "Because of
the fasting month (which usually results in a slowdown in production),
the Indonesian price will have difficulty coming down."
Natural rubber futures prices have fallen over 30% since mid-June,
hurt by the overall correction in the commodities sector, slowing
demand for natural rubber and a seasonal pickup in production in
Thailand and Malaysia, two of the world's top three producers.
But rubber future traded on the Tokyo Commodity Exchange staged a
modest recovery this week in a technical correction, with some traders
suggesting Indonesia's firmer SIR20 prices are providing a floor for
the market.
SIR20 prices are now almost at par with Thailand's STR20 prices and
Malaysia's SMR20 prices, after spending months at a discount of about
$150 U.S. per ton against STR20 during the bull run.
SIR20 for November shipment traded Wednesday at 174 cents per
kilogram, while a tire major bidding at 173 cents per kilogram was
unable to find a seller.
Shrinking Margins Make Processors Less Willing To Sell
Traders said Indonesian processors are reluctant to sell at current
levels because high raw material costs have narrowed their margins.
"Every day we check their costing," said a Singapore-dealer who sells
Indonesian rubber to major tire manufacturers. Indonesian processors
are claiming their break-even level is about 179-180 U.S. cents/kg,
traders say.
Rubber processors are now paying between IDR14,500-IDR16,000 per
kilogram, or $1.57-$1.74/kg for raw materials sold by farmers or
middlemen, said a veteran Singapore dealer with extensive contacts in
Indonesia.
Tight supplies are mainly to blame, with rubber smallholders tapping
less frequently during the fasting month of Ramadan and South Sumatra
still in its annual wintering season.
Latex output declines by at least a third during wintering, when
temperatures rise and trees shed leaves to protect themselves from the
heat.
Production during Ramadan and the Idul Fitri holiday season will
likely drop by 20%-30%, according to officials at the Rubber
Association of Indonesia, or Gapkindo.
The Ramadan fasting month this year began Sept.24, and Idul Fitri
falls on Oct. 24-25. Indonesia's 2 million smallholders account for
almost 85% of the country's rubber output.
"The wintering in Palembang (in South Sumatra) has (led to) less raw
material (supply)," said the Singapore dealer, adding Ramadan has
compounded the problem.
Dry Weather Blamed For Lower-Than-Expected Production
While supply is expected to recover once Ramadan ends and rains
return, output for the year is now being forecast to fall below
expectations.
Gapkindo expects the country's rubber output in 2006 will rise by only
3.5%, after previously predicting a 7% jump, following 2005's increase
of almost 10%. This would also be below the forecast of 5.1% put
forward by the International Rubber Study Group, an industry
benchmarker.
Gapkindo Executive Director Suharto Honggokusumo blamed the slower
growth on an unexpectedly long dry season, which has extended the
trees' wintering period.
"Normally in September it's already raining, but until now it's been
dry," said Suharto. As a result, "there are no leaves (on the trees)
and there's no production."
----------------------------------------------------------------------------
Indonesian palm oil exports to USA rise due to new FTA laws
JAKARTA, September 28 (Asia Pulse/Antara) - Indonesia has gained from
a regulation banning the sale of food containing trans fatty acids
(TFA) in the United States allowing, it to increase crude palm oil
exports to that country.
Chairman of the association of palm oil companies Derom Bangun said
Indonesian exports of CPO to the United States have increased sharply
since the TFA ban was issued in January, 2006.
In the first five months of this year CPO exports to the United States
surged to 124,000 tons from only 1,000 tons in the same period last
year, Bangun said.
This year exports to that country are expected to reach 300,000 tons
from almost zero in the past years, he added.
He said soybean and sun flower oils have been banned in the United
States after it was found that both of these oil types contain TFA.
--------------------------------------------------------------
Indonesia palm oil marginally higher with Malaysia gains
JAKARTA, September 28 (Reuters) - Indonesian palm oil prices traded
higher on Thursday following gains by Malaysian crude palm oil
futures, traders said.
At the state marketing centre's auction in Jakarta, crude palm oil
traded higher at 4,178 rupiah per kg from 4,139 on Wednesday.
In North Sumatra's Medan, the main port for palm oil exports, crude
palm oil traded at 4,186 rupiah, compared with 4,131 on Tuesday.
"The price rose following the rising trend in international
(Malaysian) prices," a Jakarta-based trader said.
The benchmark third-month December <KPOZ6> <0#KPO:> contract on the
Bursa Malaysia Derivatives exchange ended the morning session up 11
ringgit at 1,551 ringgit ($421) a tonne.
On the export front, sellers offered October shipments at $427.5 a
tonne free on board Belawan, while bids were seen at $420.
November and December shipments were offered at $425 a tonne, and bids
stood at $422.5.
RBD palm olein prices were quoted at 4,635-4,650 rupiah per kg
compared with 4,600-4,640 rupiah, with 700 tonnes of cooking oil
changing hands.
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Joyo Indonesia News Service
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