Tanzania coffee prices fall as season peaks

* Demand for coffee remains static
* Regulator expects higher volumes, quality in coming
auctions
* Next auction to be held on Sep. 27

By Fumbuka Ng'wanakilala
DAR ES SALAAM, Sept 21 (Reuters) - Tanzania's coffee prices
fell at auction this week, taking their cue from markets in
London and New York, as supplies of the commodity rose at the
peak of the season, the Tanzania Coffee Board (TCB) said on
Friday.
State-run regulator TCB said 29,878 of the 60-kg bags were
offered at the latest sale, of which 25,335 bags were purchased.
At the previous sale 21,999 bags had been offered and 21,303
bags sold.
"Coffee prices fell at auction this week compared to last
week because prices at the terminal market were also a bit low,"
Primus Kimaryo, director of quality and promotion at the coffee
board, told Reuters.
"We are now at the peak of the season ... the coffee quality
is good and demand has been somewhat static."
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.
"Overall average prices at the Moshi exchange were down by
$2.77 per 50 kg for mild arabica and robusta was down by $4.31
per 50 kg compared to the last auction," TCB said in its weekly
report.
"Average prices were above the terminal market by $0.83 per
50 kg and $24.29 per 50 kg for mild arabica and robusta
respectively," it added.
Benchmark grade AA sold at $178.20-$221.0 per bag, compared
with $186.80-$220.0 per bag previously. The average price was
$188.40 per bag, down from $191.42.
Grade A fetched $179.20-$196.00 per bag, compared with
$185.00-$203.40 per bag at the previous sale. T he average price
fell to $184.43 from $188.46 previously.
East African coffee is normally packed in 60-kg bags but the
prices are quoted for quantities of 50 kg.
The TCB says it expects the 2012/13 (June/April) crop to
rise to 55,000 tonnes from around 32,000 tonnes in the previous
season.
The auction was held on Thursday and TCB released the
results on Friday.

PRICE (dollars)
GRADE
OFFERED SOLD LOW HIGH AVERAGE
AA 8,413 7,211 178.20 221.00 188.40
A 5,034 4,737 179.20 196.00 184.43
AB 3,045 2,073 173.00 210.00 189.59
B 3,408 1,744 178.00 192.00 181.71
PB 2,150 2,110 170.00 202.80 184.34
C 2,216 1,848 149.00 173.40 167.02
ROBUSTA ORGANIC 4,317 4,317 110.00 135.30 112.58
ROBUSTA SUPERIOR 285 285 100.20 102.40 100.39
ROBUSTA FAQ 500 500 98.20 98.20 98.20
ARABICA ORGANIC 120 120 143.00 143.00 143.00
ARABICA FAQ 390 390 130.00 131.00 130.92

(Editing by Richard Lough; Editing by Anthony Barker)