The reduced amount of coffee supplies in Indonesia prompted exports from the nation's top growing region to fall 40 percent last month, Bloomberg reports.
Three provinces – Lampung, South Sumatra and Bengkulu – saw exports fall to 12,337 metric tons in March after having checked in at 23,912 tons during the month prior, the trade and industry office in Lampung said. Shipments during March 2012 amounted to 5,070 tons. Indonesia trails only Vietnam and Brazil for global growers of the soft commodity.
"There aren't too many beans left, only big foreign exporters still have stocks, but that's also very limited," research and development head Mochtar Luthfie with the Lampung chapter of the Association of Indonesian Coffee Exporters and Industry told the news source on Monday. "Supplies will gradually rise as harvest starts."
At 9:14 a.m. on Monday, coffee futures rose 2.22 percent, a 0.025-cent increase to $1.383 per pound.
Reuters reports the National Coffee Association has established a unit that is tasked with probing whether it is worthwhile to create contracts that produce higher grades of the soft commodity from three nations.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.