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India coffee prices dip, buyers continue to stay away.


Date: 04-07-2009
Subject: India coffee prices dip, buyers continue to stay away
MUMBAI, July 3 (Reuters) - Trade at the Indian Coffee Association's Thursday auctions continued to remain lacklustre as buyers stayed away because of high domestic prices, traders said.

The total quantity on offer at the auction was 374.7 tonnes of which 29 tonnes were sold, an auctioneer said.

"There were very few buyers. Prices fell as export interest was very limited. We export 70-80 percent of our coffee so a dip there is hurting prices," said a trader from Bangalore who did not wish to be identified.

Overseas buying interest was very limited as international prices have been falling. Howeve, prices in India have stayed firm since January due to a supply crunch on low stocks in the domestic market.

New York arabica coffee futures closed at a nine-week low in thin trade, in pre-holiday dealings on Thursday.

Arabica Plantation grades PB and C sold at last week's levels whereas other plantation grades remained unsold as sellers prices were higher than what buyers were willing to pay, traders said.

Arabica cherry PB and C grades sold at last week's prices and AB grade remained unsold.

Robusta parchment coffees witnessed some export interest whereas robusta cherry PB grades fell by 100 rupees per 50 kg compared to the previous sale date.

However, some plantation grades coffees from Giri in Karnataka sold at premium rates and were bought by a domestic trader, traders said. 

Source : REUTERS


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