Dec. 4 (Bloomberg) -- Tanzania’s benchmark coffee grade fell 6.8 percent at an auction on Dec. 2 after supplies of the grade rose, the Tanzania Coffee Board said.
The top arabica grade sold for an average $226.16 for a 50-kilogram (110-pound) bag, compared with $242.68 a week earlier, the board said today in an e-mailed statement from Moshi, in northern Tanzania.
Supplies of the grade rose 62 percent to 5,727 bags, it said.
Overall prices at the auction declined by an average of $10.46 per bag, compared with the previous auction because of increased supplies, the agency said. Average prices per bag were however $10.21 higher than the fair market value due to the strong demand, it said.
Supplies at the 18th auction of the 2010-11 season rose 32.2 percent to 18,785 bags from 14,214 bags last week, the board said. All the beans offered were arabicas and fresh supplies accounted for 18,028 bags were the rest were carry overs from last week, it added.
Tanzania reaps its crop from April through August. Arabica accounts for 75 percent of the country’s output, while robusta makes up the rest.
The following are details of the Dec. 2 auction in U.S. dollars for a 50-kilogram bag for the good grades:
*T Grade Offer Sold Low High Average Arabica AA 5,727 5,219 185 264.20 226.16 Arabica A 4,753 4,077 187 260.20 232.53 Arabica B 4,208 3,176 195 255.40 231.34 Arabica PB 1,091 1,091 206 255.00 230.49 Arabica C 1,684 1,561 180 232.80 196.00 Arabica FAQ 320 320 90 90 90
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