Domestic coffee prices steady with upward bias

Domestic arabica and robusta coffee prices in the week ahead are likely to remain steady with an upward bias tracking global markets, traders and analysts said.

"Traders and growers are likely to track global prices," said P J Suresh Babu, proprietor of Bangalore-based Chaitanya Coffee. Export demand is likely to stay slack this week, traders said. Indian exporters have lost out on demand mainly because growers were quoting prices higher than their global counterparts.

India exports 80 per cent of the coffee produced, while the rest is used for domestic consumption. In overseas markets, September arabica contract on New York Board of Trade (NYBOT) is likely to move up on technical factors and fears of output disruption due to hurricanes. November robusta on London International Financial Futures Exchange may see a marginal upside helped by Monday's spurt.

Monday, the contract ended at $1,775 a tonne, up $57 on speculative buying. Domestic coffee prices are largely seen tracking international markets, as India exports a substantial portion of its production."I don't see any major fluctuations in domestic prices this week. Movement would be negligible," Babu said.