Jan. 8 (Bloomberg) -- Kenya coffee prices climbed at the first sale of the year after supplies declined, the Nairobi Coffee Exchange said.
The average price for all coffee sold rose 29 percent to $212.55 a bag, from $164.15 at the Dec. 11 sale, the exchange said by e-mail from Nairobi, the capital, where auctions are held. A bag weighs 50 kilograms (110 pounds).
The average price for the benchmark AA dropped 4.3 percent to $321.67 a bag, within a range of $183 to $356 a bag, it said.
“There was fair demand as buyers were out of the market for some time,” Mansukh Shah, a coffee trader at the Nairobi-based Alanwood Ltd., said by phone. “The quality was average as we still wait for the supply of better beans.”
Germany, the U.S., Canada, the U.K., Belgium, the Netherlands, Luxembourg, Sweden and Finland are some of the main importers of Kenyan beans, according to the Kenya Coffee Producers and Traders Association, which owns the Nairobi Coffee Exchange.
Sales at the auction more than doubled to 9,429 bags worth $2.44 million from 4,243 bags valued at $851,663 at the previous auction, the exchange said.
Kenya harvests an early crop from May through July, while the main crop is reaped from September through December, according to the Kenya traders group. The coffee season runs from Oct. 1 through September.
The following are details of today’s auction in U.S. dollars per 50-kilogram bag:
Grade Low High Average AA 183 356 321.67 AB 146 237 209.25 C 145 183 164.02 HE 142 145 144.43 MH 102 119 114.87 ML 74 85 80.99 PB 157 252 209.26 T 101 151 142.79 TT 152 217 186.95 UG1 146 150 149.02 UG2 135 138 136.42
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