(Updates with comment from board in fifth paragraph.)
Oct. 3 (Bloomberg) -- Tanzania’s benchmark coffee grade fell 8.4 percent at an auction on Sept. 29, reflecting lower global prices, the Tanzania Coffee Board said.
The average price for Arabica AA declined to $281.87 per 50 kilograms (110 pounds) from $307.77 a week earlier, the board said today by e-mail from Moshi in northern Tanzania.
The grade sold for as much as $320 compared with $315.80 at the previous sale, while supplies were little changed at 2,635 60-kilogram bags from 2,629 bags, it said.
Prices for other grades also declined after supplies of the beans increased at the auction, the board said.
Average prices for mild arabica coffee were down $21.75 per 50 kilograms and up $2.75 per 50 kilograms for robusta beans, the board said. Still, the prices were above fair market rates by $10.80 per 50 kilogram bag for mild arabica and $24.91 for robusta, the board said.
Total supplies at the fifth auction of the 2011-12 season climbed 35 percent to 18,201 60-kilogram bags from 13,468 bags at the previous sale, the board said, without giving reasons. Sales at the auction climbed 76 percent to 15,348 bags from 8,721 bags as buyers replenished stocks, the board said.
The country’s output in the 12 months through June 2012 may fall 20 percent to 45,000 metric tons from 56,247 tons last season after a drought reduced the crop, Adolph Kumburu, the board’s chief executive officer, said on July 14.
Tanzania reaps its crop from April through August. Arabica accounts for 75 percent of the country’s output, while robusta accounts for the rest.
The following are details of Sept. 29 auction in U.S. dollars per 50-kilogram bag for the good grades:
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