THE decline of coffee supply from major producing areas pushed up its global price, in October compared to the preceding month.
The Bank of Tanzania (BoT) monthly economic review for October shows that prices of coffee increased due to a decline in supply in Eastern South America.
On the other side, cotton prices went down largely on account of low demand and increase in production supported mostly by good weather conditions in Argentina. However, on annual basis, world market prices of cotton, oil and gold increased while those for coffee, tea, sisal and cloves decreased.
Decline in prices of coffee was attributed to high production in Vietnam, Indonesia and India, coupled with high stock in importing countries, whereas decrease in prices of tea was due to low global demand. Similarly, cloves price declined mainly due to low demand in Indonesia—one of the major consuming countries.
Meanwhile, price of cotton rose following high demand in major cotton hubs; USA, India, Pakistan and China. Prices of crude oil and white petroleum products went up following decrease in output in Iran, Mexico and Venezuela, while gold price increased due to high demand of gold as an alternative investment portfolio.
As for crude oil and white petroleum products prices, the increase was largely due to decrease in global oil inventories. Gold prices picked up due to higher demand.