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Coffee prices up on firm overseas market demand

Coffee prices up on firm overseas market demand
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First Published: Fri, Jan 04 2008. 01 36 PM IST
By Reuters
Mumbai: Indian robusta prices moved higher at Indian Coffee Trade Association auction on firm international prices, while arabica rose on good export interest, traders said on 4 January.
The robusta cherry grades fetched Rs3,812-4,100 per 50 kg bag, compared with Rs3,711-4,000 the previous auction. Last week the auction was not held for New Year and Christmas holidays.
“Prices of robusta rose on higher prices in the international markets,” a Bangalore-based trader, who did not want to be identified, told Reuters. London robusta futures ended in the positive territory on 3 January with the March contract closing up $9 at $1,948 a tonne, its highest closing since November.
Robusta is more tolerant to warm conditions than arabica and constitutes about 65% of India’s coffee output. There was good export demand for the new arabica crop, which has already started coming from Tamil Nadu, said another trader.
In India, the harvesting starts in December and continues through February. Auctioneer Carritt Moran said 65 tonnes of coffee was sold. Total quantity on offer was 155 tonnes.
The Coffee Board has lowered its crop forecast for 2007/08 to 262,000 tonnes, from an earlier estimate of 291,000 tonnes, due to heavy rains in major growing regions, resulting in blackrot and stalkrot diseases.
The country produces only 4.5% of the world’s coffee, but exports 70-80% of its output.
Following were the prices quoted for 50 kg bags in rupees.
Grade Average price Volume (kg)
PB 6,823 1,527
MNEB/AA 5,875 4,794
A/AB 5,821 21,751
B 5,350 3,049
C 5,033 3,147
BBB 4,307 179
C 4,300 975
PB 4,525 271
PB 3,935 1,250
RKR/AA 4,100 2,000
A/B/AB 3,954 4,589
C 3,812 4,734
BBB 3,700 1,530
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First Published: Fri, Jan 04 2008. 01 36 PM IST