However, according to the Tanzania Coffee Board (TCB) auction report, a total 20,546 bags, weighing 60Kg each were sold during the trading session at the market.
The overall average price at Moshi exchange were down by 0.05 US dollars (about 80/-) of a 50 Kgs for Mild Arabica while Robusta went up by 4.23 US dollars of 50 Kgs (about 6,768/-) compared to the previous auction.
“The average prices were below the terminal market by 2.02 US dollars (3,232/-) of a 50 Kgs bag for Mild Arabica while Robusta increased by 29.58 US dollars for a 50 Kgs sack,” stated the TCB report.
Recently TCB said that the bumper coffee harvests expected in Brazil of about 50 million bags as compared to 45 million sacs last season is among the reasons behind the increased market supply that could definitely lead to price cut. Likewise, Columbia is expected to have premium crop of high output, where Tanzania coffee belong to the same group.
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.
The New York (NY C) December delivery were down by 5.50 cents of US dollars (about 8,800/- ) equivalent to 6.06 US dollars (9,696/-) of a 50 kgs bag Freight on Board (FOB) and London International Financial Futures And Options Exchange (LIFFE) market.
The January delivery were down by 64 US dollars (about 102,400/-) per metric tonnes equivalent to 3.20 US dollars (about 5,120/-) for a 50 kgs bag FOB compared with the auction held early November this year. The next auction will be held Thursday this week.