Kenyan Coffee Prices Climbed 21% at Auction, Exchange Says

Dec. 7 (Bloomberg) --Kenya’s coffee prices climbed 21 percent at an auction today as buyers replenished their stocks before the year-end holidays, the Nairobi Coffee Exchange said.

The average price for all the coffee sold rose to $340.95 for a 50-kilogram (110-pound) bag from $280.70 two weeks ago, the exchange said in an e-mail from the capital, Nirobi.

“Buyers are trying to stock as much coffee as possible because this was the second last auction before the break,” Kizito Keya, a coffee trader at Mumba Coffee Ltd., said by phone from Nairobi.

The average price for the benchmark AA grade fell 3 percent to $446.14 a bag from $459.99 at the previous sale after supplies rose 89 percent to 2,623 bags, the agency said. The top grade sold for as much as $480 a bag compared to $537 at the previous sale, it said.

The last auction this year will be held on Dec. 14 and sales will reopen on Jan. 10, according to the exchange.

Sales at the auction climbed 84 percent to 9,732 bags worth $4.1 million from 5,299 bags valued at $1.8 million at the previous auction, the exchange said.

Supplies rose 56 percent to 16,610 bags from 10,616 bags at the previous auction, the agency said.

The country harvests the bulk of its crop from October through December, while a secondary crop is reaped from April to June. The following are details of today’s auction in U.S. dollars for a 50-kilogram bag:

Grade              Low            High              Average
AA                 391            480                446.14
AB                 260            445                385.61
C                  242            342                287.75
E                  355            361                358.82
MH                 187            208                198.14
ML                  90            174                134.52
PB                 346            442                385.44
SB                  85             85                 85.00
T                  111            264                201.68
TT                 258            355                332.54
UG                 262            322                275.18
UG1                198            267                251.17
UG2                120            255                191.96
UG3                 76            163                115.55

To contact the reporter on this story: Fred Ojambo in Kampala at fojambo@bloomberg.net

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net

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