Coffee seen weak on poor demand

Domestic arabica and robusta coffee prices are seen down this week on sluggish demand, traders and analysts said today. There are not many takers for Indian coffee as end of the season nears and new crop will arrive in late December or early January, traders said.

Overseas coffee prices are also likely to remain steady to weak in the next few days, they said. The near month (November) on London International Financial Futures Exchange may be firm but far month contracts are likely to be weak.

Prices on Intercontinental Exchange Futures US may trade in a narrow range awaiting a clear picture on Brazil's crop, analysts said.

As Indian coffee prices are already quoting above international rates, they are unlikely to move up this week, said Milan Shah of Madhu Jayanti Group.

"Coffee prices may fall by Rs 1-2 a kg. There is not much of buying support now," said PJ Suresh Babu, proprietor, Chaitanya Coffee.

Prices may be subdued as there are some stocks left from the old crop while demand has petered out, he said.

Arrivals of the new crop will commence from December end or early January.

In 2007, export demand for Indian coffee has been low mainly because local rates quoted have been higher than international prices.

Coffee exports during January-October were down 12 per cent from a year ago at 191,349 tonnes, data from Coffee Board of India showed.