DAR ES SALAAM: Tanzania's arabica coffee prices fell at auction this week as supply increased and prices for the commodity in New York declined, regulator Tanzania Coffee Board (TCB) said on Saturday.
State-run TCB said 33,713 60-kg bags were offered at the latest sale and that 28,945 bags were purchased. At the previous auction, 29,498 60-kg bags had been offered for sale and 22,722 bags sold.
"Overall average prices at the Moshi exchange were down by $4.31 per 50 kg for mild arabica, while robusta were up by $1.06 per 50 kg compared to the last auction," TCB's auction report said.
"Average prices were above the terminal market by $10.61 per 50 kg for mild arabica and robusta were above the terminal market by $16.63 per 50 kg."
Tanzania, Africa's fourth-largest coffee producer after Ethiopia, Uganda and Ivory Coast, produces mainly arabica and some robusta coffee. Prices of its arabica normally track the New York market while those of robusta take their cue from London.
TCB said New York markets fell by $5.90 per 50 kg, while London markets declined by $2.10 per 50 kg.
East African coffee is normally packed in 60-kg bags, but the prices are quoted for quantities of 50 kg.
Benchmark grade AA sold at $118.00-$181.00 per bag, compared with $120.00-$180.00 per bag previously. The average price was $122.91 per bag, down from $129.92 at the previous auction.
Grade A fetched $116.00-$131.00 per bag, compared with $122.00-$139.40 per bag at the previous sale. The average price fell to $120.67 from $126.08 previously.
The TCB says it expects the 2013/14 (June/April) crop to fall to 45,000 tonnes from around 71,600 tonnes in the previous season, the highest output in 20 years.
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