Indonesia's cocoa grinders to expand, consume more beans

JAKARTA, April 12, 2011 - Indonesian cocoa grinders expect to process 280,000 tonnes of cocoa beans this year, up about 55 percent from last year, as  grinders expand capacity to benefit from a recent tax change on cocoa beans exports, an industry official said on Tuesday.

The government slapped an export tax on cocoa beans for the first time last April in an effort to encourage the retention of beans for local refining and possibly gain a premium in international markets.

NY Coffee and Cocoa market close review for today, April 12, 2011

COFFEE
* May arabica coffee futures fell 0.80 cent to close  at $2.7380 per lb.
 

* May/July spreading contributed to the day's heavy volume
ahead of the spot contract's first notice day April 20.
 

* Market was firm on tight supplies and strengthening  chart-based signals, but turned negative on spillover pressure  as the Reuters-Jefferies CRB index <.CRB> fell about 2 percent  when oil slumped - traders.

Indonesia Sulawesi cocoa price fall on futures, high export tax

JAKARTA, April 12, 2011 - Indonesia's Sulawesi cocoa beans prices fell this week on expectations of a drop in New York prices and a hefty export tax applied for April shipments, an industry official said.

Sulawesi fair-average cocoa beans were offered at around 22,000 rupiah ($2.5) per kg this week, down from an average of 27,000 rupiah per kg in March, said Dakhri Sanusi, secretary general of the Indonesian Cocoa Association.

"The government increase in export tax in April to 15 percent at a time when New York cocoa prices are expected to fall on resumption of cocoa shipments from Ivory Coast is a piece of bad luck for local farmers," said Sanusi.

Mexico coffee farmers hoard on hope of higher prices

MEXICO CITY, April 12, 2011 - Mexican coffee producers may be hoarding their  beans to see whether record prices push even higher, adding to a supply squeeze that helped propel the coffee market to a 34-year peak last month.

Rodolfo Trampe, head of the national coffee association Amecafe, told Reuters in an interview on Monday exports from the world's fourth-largest arabica producer have fallen about a quarter so far this season compared to last year.

"There are some problems in the supply chain," Trampe said.