A senior Cofei source said,``Cofei is on the threshold of a considerable increase in volumes as our members are gradually getting used to trading through the exchange.'' Recently, at Cofei, trading activities have spurted with the rise in international coffee prices, the source said.

Brazilian cold-winds have taken the coffee prices a level up and as a result the coffee exchanges in London, New York and India have witnessed an increase in prices, he said However, he added, ``Still there are fluctuations in the prices.''

On May 17, Cofei traded 420 lots (each of 600 kilograms) of coffee as against 631 lots of May 14. On May 17, the open projections have gone up at 1,595 lots as against 600 lots on May 14. On July 7 1998, the first day of its operation the Cofei traded 13 lots as against seven lots on July 21.

Compared totrading on May 14, the prices have gone up on Monday. Under July 1999 contract, the Plantation A variety was finalised at Rs 82.95 a kilo, an increase of Rs 2.35. The prices were at Rs 83.90 (Rs 2.05), at Rs 87.75 (2.05), at Rs 87 (Rs 2.30), at Rs 87.30 (Rs 2.30) and at Rs 87 (May open) for September, November, January (2000), March and May contracts respectively.

Under the July contract, on May 17 the Cofei has traded Robusta cherry AB at Rs 56.80 a kilo with a price increase of 30 paise. The September and November contracts were fixed at Rs 57.50 (30 paise) and at Rs 60 (no variation) while January and March contracts were set at Rs 60.50 (35 paise) and at Rs 60.50 (15 paise) respectively. The May contract was traded at Rs 60.50.

On May 17, the New York exchange traded Plantation A varieties at 108.50 cents a pound. The July, September and December contracts were set at 109.40 cents, 111.25 cents and 112.80 cents respectively.

While the London Coffee Exchange has traded its May contracts at $1395 pertonne and July contracts at $ 1415 as against its September and November contracts at $1410 and $1415 respectively. July prices at London Exchange have closed higher by $6.

On Tuesday, Cofei finalised prices of Plantation A variety at Rs 84.55, Rs 85.55, Rs 89, Rs 88.30 and Rs 88.80 for contracts for the month of July, September, November, January and March respectively. On May 18, Robusta Cherry variety was traded at Rs 57.25, Rs 57.75, Rs 60.50, Rs 60.80 and Rs 60.80 respectively.

However, Cofei chairman, Ashwin Shah said, ``it is very difficult to comment on the present spurt in prices as situation is highly unpredictable. Anything can happen, the market is likely to remain volatile.''