The amount of coffee procured at the
Moshi exchange increased slightly to 6,768 bags compared to 5,840 bags
sold in the previous session (equivalent to 15.8 per cent change), the
trend that describes deteriorating prices of the commodity in the world
market.
However, the amount supplied at the
auction increased to 18,359 bags compared to 15,699 bags offered in the
previous session. Likewise, the overall average price at Moshi exchange
were up by 2.68 US dollars for a 50 kgs (about 4,288/-) for Mild
Arabica.
The last market held early February last
month saw decline of price by 8.28 US dollars (about 13,248/-). But the
average prices were below the terminal market by 10.80 US dollars
(17,280/-) for a 50 kgs for Mild Arabica.
The New York (NY C) March delivery were
down by 3.25 US dollars cents (about 5,200) equivalent to 3.58/50 cents
US dollar (about 5,728/-) for a 50 kgs bag Freight on Board (FOB).
The March delivery for the London
International Financial Futures and Options Exchange (LIFFE) market was
down by 45 US dollars (about 72,000/-) per metric tonnes equivalent to
US dollars 2.25 US dollars (about 3,600/-) of a 50 kgs bag FOB compared
with the auction held in the previous auction.
The bumper coffee harvests expected in
Brazil of about 50 million bags as compared to 45 million bags last
season has continued to pose threats to the local producers as the
market will be over supplied.
Likewise, Columbia is expected to have
premium crop of high output, where Tanzania coffee belongs to the same
group.
Due to the increased output, the market
is therefore switching from bullish to bearish where the price of stocks
is decreasing. 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.
Coffee production was one of the traditional cash crops which
contributed to the increase of export volumes in the year ending January
this year.
According to the Bank of Tanzania (BoT)
monthly economic review, coffee exports gained 186.6 million US dollars
(about 298.6bn/-) in 2012 compared to 142.6 million US dollars in the
previous period.
Source:The Daily News, www.dailynews.co.tz, reported from Dar es Salaam
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