MUMBAI(Topmcxtips.com): Good rains in Brazil have pulled down the prices of Arabica Coffee variety. The global trend has inspired farmgate prices of India Arabica Parchment to show a a declining trend. The prices are now ruling at 11,000 per bag (each bag is 50 kg). Arabica harvest is currently underway in major plantations in Karnataka.
The global prices have dropped around 5.5 per cent to settle at 187-189 cents per lb (pound). Bean prices on the New York terminal are currently ruling at 189 cents per lb compared to 198 cents per lb about three weeks ago.
According to Coffee Board, LIFFE January robusta coffee futures settled down $22, or 1 per cent, at $2,074 a ton.
But this declining trend is not a steep one, experts said. Experts estimates the Brazilian crop would be around 47 million bags (each bag is 60 kg) for 2015-16, which is much lower than the 2014-15 crop.
The United States Department of Agriculture(USDA) has pegged India’s Coffee exports for 2014/15 (Oct/Sep) at 5.1 million 60 kg bags. This forecast is marginally higher than the revised MY 2013/14 estimate.
More than 90 percent of India’s coffee production is exported and the domestic industry focuses much of its marketing effort on export promotion. Domestic consumption for coffee has remained relatively flat despite a large number of international coffee chains entering the Indian market.