Coffee
Coffee prices in Indonesia, which may this year lose third-rank among global coffee growing countries to a revived Colombia, are holding well above those of the international market. Indonesians are expected to consume a record 2.5m bags of coffee in 2013-14, 30,000 bags more than the official USDA forecast. With output falling year on year, Indonesia is one country expected to see lower exports in 2013-14, down 12% year on year to 7.8m bags. This would leave inventories at the end of the season at just 48,000 bags, which would be the lowest in at least 50 years.
Edible Oil
Palm oil shipments from Indonesia, the world’s largest producer, climbed to the highest level in eight months, as a decline in supplies of substitute oils in India and China spurred demand from the biggest buyers. Exports increased 13 percent to 1.86 million metric tons from 1.64 million tons in September, the Indonesian Palm Oil Association, said..
Increased demand for palm oil, used in everything from candy to cosmetics, amid a drop in output due to heavy rains, may help extend a rally in prices.
Cotton
China is hoarding a record amount of cotton to aid farmers as global production exceeds demand for a fourth consecutive year, increasing the risk of a supply surge that would tip prices into a bear market.
The 2013-14 world production is projected at 25.6 million tonnes (mt), down 1.2 mt from the last season.
World consumption is forecast at 23.8 mt in 2013-14, up two per cent from last season. Cotton traders and market analysts do not expect cotton prices to increase in near future. The upside trend may start after January 2014 when there is demand in the market.