Tanzania coffee prices rise in line with New York

DAR ES SALAAM (Reuters) - Tanzania's coffee prices rose at this week's auction, following a boost at the New York exchange, traders said on Friday.

State-run Tanzania Coffee Board said 30,436 60-kg bags were offered for sale, with 29,228 bags sold. Last week 21,534 60-kg bags were up for sale, with 17,291 bags sold.

"Overall the average price at Moshi exchange was up $4.82 per 50 kg compared to the last auction," TCB said in its weekly report.

East African coffee is normally packed in 60-kg bags but the prices are quoted for quantities of 50 kg.

Benchmark grade AA sold at $140.00-$185.00 per bag, compared with $156.20-182.00 per bag last week and fetched an average price of $170.49 per bag, up from $167.41 previously.

Grade A fetched $139.00-$173.00 per bag, from $153.00-$171.00 per bag, at the previous sale and got an average price of $169.23 compared with $164.08 last week.

Traders said prices at the auction rose, in line with markets in New York.

"The terminal market in New York shot up at the end of last week for no apparent reason and has stayed at that level, so prices were high here too," said a trader at a leading coffee exporter.

"The volumes are good because traders are keen to get in a lot of coffee because next year's forecasts are lower," he said.