India coffee steady as tight supply offsets low demand

MUMBAI, July 25 (Reuters) - Prices at the Indian Coffee Trade Association auction on Thursday remained mostly steady as low export demand and weak international prices were offset by the tight supply situation, traders said on Friday.

"Exporters are not getting enough orders as peak harvesting in Brazil is going on," said a Bangalore-based trader, who did not want to be identified.

In Brazil, the world's largest arabica producer, harvesting started in July.

In India, peak arabica harvesting starts in December and ends in February, while robusta arrivals start in February and continue through April.

Weak international prices also pulled down the domestic prices, he said.

Arabica coffee futures in New York settled quietly lower Thursday, as fund selling continued to depress the market, while roaster buying kept it from falling lower. See [ID:nN24504520]

Arabica is mainly used in premium coffees, while robusta is typically blended with arabica beans for a lower-cost option for brewed coffee, or processed into instant coffee.

Now everything depends on the weather in Brazil, said another trader.

Brazil is currently in winter and severe frost could slash output a year later, which may push the prices up. See [ID:nN21279680]