BY BUSINESS REPORTER
Tanzania's Arabica coffee prices fell at last week's auction, with just over half of the coffee on offer sold after growers rejected low bids from exporters, traders said on Tuesday.
According to the Tanzania Coffee Board (TCB), 23,615 60-kg bags were offered at the sale and 12,765 bags sold. That compares with figures at the previous action of 21,359 bags for sale and 20,615 sold.
"Overall average prices at the Moshi exchange were down by $24.75 per 50 kg for mild arabica compared to the last auction,"
TCB said in its weekly report. No robusta coffee was sold at the auction due to limited supply. Tanzania produces mainly arabica coffee and grows some robusta. Prices of its arabica normally track the New York market, while those for robusta take their cue from London.
"The terminal market in New York was last week dropping daily. It was very significantly down on the previous week, so many of the producers were disappointed with the prices offered and they were not ready to sell," said a trader at a coffee exporting company based in the northern Tanzanian town of Moshi.
"There are very small volumes of robusta coffee coming to the auctions. More than two-thirds of the available robusta is directly exported, therefore it does not pass through the auction."
TCB said coffee prices in New York were down last week by $12.80 per 50 kg, while London prices fell by $5.50 per 50 kg.
Benchmark grade AA sold at $242-$316 per bag, compared with$205-$329 per bag previously. The average price was $260.67 per bag, down from $289.70.
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