Major commodity prices up in world market

BoT HQ in DSM
With the exception of coffee, tea and gold, the world market prices of major commodities increased significantly in the month of February 2013.

The Bank of Tanzania (BoT) has attributed the dwindling prices of coffee and tea to increased production and weak demand. 

The central bank’s monthly economic review shows that the 12-month average prices for robusta coffee, for instance, fell to 2.27 US dollars in the year ending February from 2.39 US dollars per kilogramme, a five per cent drop from the previous period’s.

According to the International Coffee Organization report of February 2013, the fall in price of coffee (Arabica) was mainly due to good crop harvest in Brazil. Similarly, prices of tea declined mainly due to an increase in tea production in Kenya, following favorable weather condition.

The price of cotton rose, thanks to fall in production in the US and India, coupled with high demand in China. During the period under review, the prices increased to 1.94 US dollars from 1.89 US dollars per kgm registered in the corresponding period a year before.

Furthermore, the OPEC monthly report of March 2013 points to an increase in oil prices in the reviewed month, mainly due to growing optimism about the global economic recovery. 

The signs that the US and China economies were recovering at quicker pace than before increased business confidence, accelerating demand for oil.

In addition, oil prices were also boosted by expectations that world oil demand would increase faster than previously projected. The price of gold declined largely due to a weak investment demand.

The month of February saw prices per troy ounce falling to 1,628 US dollars from 1,672 US dollars, representing a 2.6 per cent change
Source: The Daily News, www.dailynes.co.tz, reported from Dar es Salaam

 
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