The amount of coffee procured at the Moshi exchange declined by about 26 per cent to 9,083 bags from 12,244 bags sold in the previous session, a trend that explains the deteriorating prices of the commodity in the world market.However, the amount supplied at the auction fell to 14,715 bags from the previous session’s 16,182 bags.
According to the auction results posted by the Tanzania Coffee Board (TCB), the overall average price at Moshi exchange were down by 4.13 US dollars for Mild Arabica and Robusta by 0.84 US dollars for the 50 Kgs compared to the previous market.
Likewise, the average prices were below the terminal market by 12.18 US dollars for a 50 Kgs for Mild Arabica while Robusta were above the terminal market by 11.55 US dollars for 50 Kgs bag.
Likewise, the average prices were below the terminal market by 12.18 US dollars for a 50 Kgs for Mild Arabica while Robusta were above the terminal market by 11.55 US dollars for 50 Kgs bag.
The overall average price at the exchange went up by 2.68 US dollars for a 50 Kgs for Mild Arabica.
The last market held early February last month saw a decline of price by 8.28 US dollars (about 13,248/-). The New York May delivery were up by 6.55 cents US dollar, equivalent to 7.22 US dollars (about 11,552/-) for a 50 kgs bag Free on Board (FOB).
The May delivery for the London International Financial Futures and Options Exchange (LIFFE) market was down by 108 US dollars (about 172,800/-) per metric tonnes equivalent to 5.40 US dollars (8,640/-) for a 50 kgs FOB compared with the auction held on March 21, this year.
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.
The last market held early February last month saw a decline of price by 8.28 US dollars (about 13,248/-). The New York May delivery were up by 6.55 cents US dollar, equivalent to 7.22 US dollars (about 11,552/-) for a 50 kgs bag Free on Board (FOB).
The May delivery for the London International Financial Futures and Options Exchange (LIFFE) market was down by 108 US dollars (about 172,800/-) per metric tonnes equivalent to 5.40 US dollars (8,640/-) for a 50 kgs FOB compared with the auction held on March 21, this year.
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.
Tanzanian coffee belongs to the Colombian group. Due to increased output, the market is therefore switching from bullish to bearish where the price of stocks is decreasing.
Tanzanian coffee belongs to the Colombian group. Due to 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 205.2 million US dollars (about 328.32bn/-) in 2012 compared to 70.2 million US dollars (about 112.32bn/-) in the previous period.
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 205.2 million US dollars (about 328.32bn/-) in 2012 compared to 70.2 million US dollars (about 112.32bn/-) in the previous period.
Source: The Daily News, reported from Dar es Salaam
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