Tanzania arabica coffee prices rise at latest sale

DAR ES SALAAM (Reuters) - Tanzania's arabica coffee prices rose at auction last week, in tandem with markets in New York as local supply decreased, the Tanzania Coffee Board (TCB) said on Wednesday. State-run regulator TCB said 17,913 60-kg bags were offered and 15,547 bags were purchased. At the previous sale, 31,952 60-kg bags had been offered for sale, with 23,878 bags selling. "Overall average prices at the Moshi exchange were up by $6.37 per 50 kg for mild arabica, while robusta were down by $2.50 per 50 kg compared to the last auction," TCB said in its auction report. "Average prices were above the terminal market by $10.11 per 50 kg for mild arabica and robusta were above the terminal market by $18.15 per 50 kg," it added. Tanzania is Africa's fourth-largest coffee producer after Ethiopia, Uganda and Ivory Coast and 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. TCB said New York markets rose by $4.35 per 50 kg, while London markets fell by $0.45 per 50 kg. East African coffee is normally packed in 60-kg bags, but the prices are quoted for quantities of 50 kg, the remaining amount used for grading. Benchmark grade AA sold at $131.00-$144.00 per bag, compared with $125.00-$137.20 per bag previously. The average price was $133.37 per bag, up from $127.32 at the previous auction. Grade A fetched $131.00-$144.00 per bag, compared with $120.00-$136.40 per bag at the previous sale. The average price rose to $133.55 from $126.24. The TCB says it expects the 2013/14 (June/April) crop to fall to 45,000 tonnes from around 71,600 tonnes in the previous season, the highest output in 20 years. The next auction will be held on Thursday.