By George Mwangi
Special to DOW JONES NEWSWIRES
NAIROBI–The average price of Kenyan arabica coffee jumped 18.19% at the second auction after the seasonal recess, compared with the first, according to a report Wednesday.
The average price for all grades was $192.88 for a 50-kilogram bag on August 9, compared with $163.19 on July 26, while average prices for some grades were lower, according to an auction report.
Prices had been falling before the annual break in June, largely due to the lower quality of the bean on offer at the end of the previous season, according to Daniel Mbithi, chief executive of the Nairobi Coffee Exchange, which runs the weekly auction.
There was no auction last week because a prolonged cold spell from May to August has delayed coffee beans drying, said Karen Mumbua, the business administrator of the auction house.
Kenya’s arabica auction uses New York ICE futures prices as its benchmark.
At this week’s Nairobi auction, 17,799 50-kilogram bags were offered, up from 10,270 bags at the previous sale. The report didn’t give the amount sold.
Coffee production for the year from October 2015 to September 2016 is expected to remain around 40,000 metric tons, according to Kenya Coffee Directorate statistics.
The following are the high and low prices, in dollars, for a 50-kilogram bag of each of the main grades, as quoted by the exchange. The overall average price for the auction includes the grades listed below, as well as other grades of lower quality.
GRADE LOW HIGH WEIGHT AVERAGE PREVIOUS AVERAGE AA 51 302 157,326 245.90 212.58 AB 50 264 429,384 227.79 220.57 C 50 246 173,626 209.66 178.93 E 236 297 1,521 264.42 268.70 PB 119 261 51,295 225.77 206.48 T 24 165 40,960 92.90 126.19 TT 33 237 26,649 161.14 181.08 UG 32 101 63,000 59.47 42.00 UG1 40 159 61,624 103.58 72.39 UG2 41 152 22,165 69.57 56.09 UG3 60 79 6,053 69.69 45.00 Stock Market Quotes, Business News, Financial News from http://commodity-market-news.com
Write to George Mwangi at realtimedesklondon[a]dowjones.com
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