ICO QUOTAS BEFORE OCTOBER UNLIKELY - DELEGATES The restoration of coffee export quotas before the end of the current 1986/87 coffee year (Oct 1/Sept 30) now seems unlikely, given reluctance by International Coffee Organization, ICO, producers and consumers to resume negotiations on an interim quota accord, producer delegates told reporters. Consumers and most producers see no point in reopening the quota dialogue while Brazil's position remains unchanged, they said. Brazil's refusal to accept a reduction in its previous 30 pct share of the ICO's global export quota effectively torpedoed talks here last month aimed at restoring quotas before October, the delegates noted. Disappointment at the lack of progress on quotas forced coffee futures in London and New York to new lows today, traders here said. Near May in New York fell below one dlr in early trading at around 99.10 cents per pound, traders said. Producer delegates said that while the possibility of reimposing quotas before October remained on the ICO agenda, in practice the idea had effectively been discarded. The ICO's executive board session here this week has so far barely touched on the quota debate, demonstrating general unwillingness to revive talks while chances of success are still remote, producer delegates said. Some producers are in no hurry to see quotas restored, despite the price collapse seen since the failure of last month's negotiations, they said. "With Brazil's frost season approaching, who wants to negotiate quotas," one leading producer delegate said. Coffee prices normally rise during Brazil's frost season (mainly June-August) as dealers and roasters build up stocks as insurance against possible severe frost damage to Brazil's crop. Many producers are more interested in working towards reimposing quotas from October 1, based on a new system of quota allocations valid until the International Coffee Agreement expires in 1989, they said. Guatemala has already proposed the "other oilds" producer group should meet in the next two months to begin talks on how to allocate quota shares. Producers still seem divided on how to overhaul the quota distribution system, with some producer delegates reporting growing support for a radical reallocation, based on the principle of "objective criteria" favoured by consumers. At last month's council session a splinter group of small producers backed consumer demands for new quota shares based on exportable production and stocks, while Brazil, Colombia and the rest of the producers favoured leaving quota allocations unchanged, except for some temporary adjustments. A delegate from one of the eight said more producers now supported their cause. The delegate said unless major producers like Brazil showed readiness to negotiate new quota shares, prospects for a quota accord in October also looked bleak. The U.S. and most other consumers are still determined to make reimposition of quotas conditional on a redistribution of quota shares based on "objective criteria." ICO observers remained sceptical that Brazil would be prepared to accept a quota reduction when the ICO council meets in September. Brazil has adopted a tough stance with banks on external debt negotiations and is likely to be just as tough on coffee, they said. They said Brazil's reluctance to open coffee export registrations might reflect fears this would provoke another price slide and force an emergency ICO council session, which would most likely end in failure. Producers met this afternoon to review the market situation but had only a general discussion about how further negotiations should proceed, a producer delegate said. Producers plan to hold consultations on quotas, and then may set a date for a formal producer meeting, but plans are not fixed, he said. The ICO executive board reconvened at 1650 hours local time to hear a report from consultants on ICO operations. The board meeting looks set to end today, a day earlier than scheduled, delegates said.