In contrast, the Agriculture Ministry forecast 2011 production to increase by 1.6% to 11.817 mln bags in January, a considerably higher estimate and a projection of an upward trend. The ministry did not elaborate on the reasons for the expected increase.
Last week an Indonesian industry association official forecast coffee bean production in 2011 will fall by 30 percent from an estimated 600,000 tonnes in 2010 as rains in key producing areas damage cherries.
"News that Indonesian production may well drop in 2011 due to La Nina has been around for a while. It may have helped put prices up a bit last week, but I would guess the surge in NY prices is more of an influence," a London-based broker said.
"I think 90 percent of the strength in London is due to NY's strength," the broker said. "The other 10 percent is due to talk of lower production and insurance buying just in case the situation gets worse due to adverse weather somewhere." For the latest updates PRESS CTR + D or visit Stock Market news Today