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 an increase in a 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.
The decline in prices of coffee was attributed to high production in Vietnam, Indonesia, and India, coupled with high stock in importing countries, whereas the 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, the 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 the decrease in output in Iran, Mexico, and Venezuela, while gold price increased due to high demand for gold as an alternative investment portfolio.
As for crude oil and white petroleum products prices, the increase was largely due to the decrease in global oil inventories. Gold prices picked up due to higher demand.