[Kabar-indonesia] Indonesia's '07 palm oil output may rise 6.7%: Assoc [+Dow Jones Focus/Coffee]

[JoyoNews at aol.com]

also: Dow Jones Focus: Indonesia 06 Coffee Exports Seen Below 200,000 MT

Indonesia's 2007 palm oil production may rise 6.7%, Bangun says 

JAKARTA, June 21 (Bloomberg): Indonesia's output of palm oil, the biggest 
rival for soybean oil, may increase at least 6.7 percent in 2007 on higher 
yields, Derom Bangun, chairman of the nation's palm oil producers' association, 
said.

Production may rise to between 16 million and 16.2 million metric tons, 
Bangun 
said in a phone interview. He increased his forecast for this year to 15 
million tons from 14.7 million tons estimated on Feb. 23, as better rainfall 
boosted productivity.

Palm oil for delivery in September rose RM 2, or 0.1 percent, to RM 1,453 
(US$397) a metric ton on the Malaysia Derivatives Exchange at 12:17 p.m. Kuala 
Lumpur time. Prices have risen 2.3 percent in the past six months.

Palm oil is used for cooking, and to produce fatty alcohols used in soaps, 
detergents and lubricants. It is also used to mix with diesel for more efficient 
burning of the fuel.

China, India and Pakistan are the main export markets for the tropical oil, 
mostly for use in food. 

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Focus: Indonesia 06 Coffee Exports Seen Below 200,000 MT

By Reuben Carder

JAKARTA, June 20 (Dow Jones)--Indonesia's coffee exports could drop
below 200,000 metric tons this year, hit hard by a poor harvest and
the lack of carryover stocks from last year.

This latest estimate by traders and industry participants is
significantly lower than figures of around 245,000 tons stated by
industry officials earlier this month.

"(Export) will drop significantly," a trader in the key growing region
of Sumatra said. "It will probably be below 200,000 tons this year."

A poor harvest this year had caused dual setbacks to the industry, as
low yield had depleted stocks and poor quality beans reduced demand,
the trader said. "It is because of lower production, and poorer
quality product - the buyers are less interested," the trader, who
declined to be named, said.

Indonesian Coffee Exporters Association, or AEKI, Jakarta executive
secretary Rachim Kartabrata agreed that exports of below 200,000 tons
"was a possibility." AEKI research has indicated a drop of around 30%
in harvest levels in the main robusta growing region of Sumatra,
mainly due to excessive rain, Kartabrata said.

"If this is correct, the amount left for export (after domestic demand
is met) would be around 200,000 tons, more or less," he said.

AEKI has said that domestic consumption might pick up by 8.3% this
year to 130,000 tons.

High export levels of around 350,000 tons last year had been an
anomaly, Kartabrata said. "We can't compare this year with 2005. It
was something extraordinary."

2005's high export levels were due to an abundance of carryover stocks
from a steadily increasing trend in harvest yield over the preceding
years, Kartabrata said. "This year the carryover stocks seem to be
exhausted - there is only a little left," he said. "(Carryover stocks)
have not been backed up by production," he added.

Arabica Exports Not To Be Affected

While overall production will probably fall by about 30%, arabica
exports will not be affected, Kartabrata said.

Indonesia is the world's fourth-largest coffee producer and is the
second-largest robusta producer after Vietnam. Robusta constitutes
around 85%-90% of domestic output, and arabica the remaining 10%-15%.

Lampung, South Sumatra and Bengkulu provinces account for 75% of total
robusta production. Arabica is grown mostly in east Java, northern
Sumatra and south Sulawesi.

Robusta harvesting occurs twice a year, with the primary crop lasting
from April to August, and a secondary crop from October to December.

Exports of coffee beans from Sumatra island fell around 26% in the
first four months of 2006, according to industry data released last
month.

The industry logged exports of around 62,000 metric tons in the four
months to April, down from almost 84,000 tons in the same period last
year.

April exports alone fell almost 46%to around 10,500 tons, from around
19,400 tons a year ago, according to the data, on pressure from low
production, competition with the domestic market, and negative buyer
reaction to poorer quality beans.

Prices, Production Not Affected By Latest Quake

But despite fears expressed by some traders, an earthquake last week
that shook the coffee producing Lampung province on Indonesia's
Sumatra island is unlikely to hit production or exports further,
officials said.

AEKI Lampung spokesman Nuril Hakim said Friday that he did not know of
any damage to plantations. "So far there have been no reports," he
said. The quake's impact had been largely centered downtown in the
provincial capital Banda Lampung, whereas most coffee plantations were
located in outlying districts, Hakim said.

Kartabrata confirmed Tuesday that there had been no reports of damage.

In the wake of several recent earthquakes in Indonesia, Lampung
province was jolted by an undersea trembler measuring 5.9 on the
Richter Scale on Monday last week. Hakim said aftershocks had
continued throughout the week to Friday.

The Lampung trader said export prices were yet to react to the quake.
Grade 4 robusta in Lampung province remained steady at $1,089a ton, he
said Monday.

Meanwhile, arabica coffee futures rose on the New York Board of Trade
on Tuesday but trimmed an early surge to two-day highs after origins
sold, while July-September rollovers dominated before notices start
Thursday.

Nybot July ended 50 points higher at 95.45 cents a pound and September
gained 20 points to 97.45 cents.

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Joyo Indonesia News Service
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