| Local arabica rates may remain sideways with a weak undertone due to absence of any bullish factors and global prices remaining damp, they said. |
| Export demand continues to be weak, as Indian rates remain higher than overseas prices. |
| Also, the rupee's appreciation against the dollar does not augur well for export realisations, said A N Devraj, proprietor of Karnataka-based Sarathy Curing Works. |
| India exports 80 per cent of the coffee produced, while the rest is meant for domestic consumption. |
| However, Indian coffee exports in January-May were slightly down at 109,287 tonnes, compared with 109,563 tonnes in the same period a year ago, according to data from Coffee Board of India. In overseas markets, prices of July arabica contract on New York Board of Trade are likely to edge down, as bullishness has been factored in. |
| July robusta on London International Financial Futures Exchange is likely to be range bound with an upward bias. |
| Robusta coffee prices may edge up on the back of firm trends in overseas markets. Last week, July robusta on LIFFE moved up $69 to $1,854 a tonne on reports of supply constraints. During the week it also touched 9-year highs. |
| "Robusta coffee prices may move up by Rs 2-3 a kilo," Devraj said. According to him, supply shortage in Vietnam and a delay in crop picking in Columbia, major producers of robusta coffee, has led to firm prices. |
| However, arabica prices are likely to trade in a narrow range with a possible downward movement, as international prices are seen weak, he said. |
| "In arabica coffee, there is no supply pressure except in one variety "" Pebury-"" now quoting at Rs 136 a kilo against its normal rate of Rs 112," Devraj said. |
| Overall export demand remains slack, as Indian prices are higher than overseas rates. |
| The rupee's appreciation against the dollar has also forced exporters to stay on the sidelines. |
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