Festival demand to lift arabica rates

Arabica coffee prices in the domestic market are likely to see some upside during the coming week on good demand from local roasters ahead of festivals, traders and analysts said.

However, robusta coffee prices are seen weak as international demand is likely to be dull because of ample stock, they said.

November arabica contract on the New York Board of Trade is likely to move in a narrow range on mixed fundamentals, analysts said. On London International Financial Futures Exchange, robusta coffee futures for December delivery are also seen in a range tracking NYBOT. "Some good enquires were seen in the last couple of days for arabica plantation PB, AA, and B varieties from roasters in Tamil Nadu," said A N Devraj, proprietor of Sarathy Curing Works.

Upcoming festivals will further improve demand, he said. However, weakness in international demand could dampen sentiment, traders said.

Robusta coffee prices are likely to ease during the week taking international cues, Devraj said.