Kenya’s Top Coffee Prices Fall After Buyers Built Up Stockpiles

Kenya’s coffee prices fell for the first time in two weeks after buyers built up stockpiles.

The price of the benchmark AA grade beans at auction today dropped to an average $318.91 a bag from $321.81 a bag on Jan. 15, according to data e-mailed today from the Nairobi Coffee Exchange. Supplies climbed almost 17 percent. A bag weighs 50 kilograms (110 pounds).

“Demand is low because of good stocks held by buyers,” Kizito Keya, a coffee dealer at Mumba Coffee Ltd., said by phone from Nairobi.

Sales at the auction rose almost 20 percent to 5,636 bags valued at $1.4 million from 4,714 bags last week, the exchange said. The following are details of today’s auction in U.S. dollars per 50-kilogram bag:

Grade          Low            High          Average
AA             294            336           318.91
AB             161            237           194.63
C              149            176           166.72
HE              89             89            89.00
MH             120            137           131.16
ML              91             99            93.03
PB             156            219           201.00
SB              68             91            72.38
T               89            155           145.04
TT             140            194           161.87
UG             116            154           135.64
UG1            154            156           154.77
UG2            113            145           127.64

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

To contact the editor responsible for this story: Paul Richardson at pmrichardson@bloomberg.net

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