Kenya Coffee Prices Climb for 2nd Week as Buyers Build Up Stocks
Kenyan coffee prices climbed for a second straight week at an auction yesterday as buyers replenished their inventories.
The average price for all coffee sold was $155.36 for a 50-kilogram (110-pound) bag, up from from $152.66 a week earlier, the Nairobi Coffee Exchange said by e-mail from Nairobi, the capital, where auctions are held. The average for the benchmark AA grade was $285.04 a bag from $285.15, it said.
“There was increased demand as buyers were active building up their stocks,” Kizito Keya, a coffee trader at Mumba Coffee Ltd. said by phone from Nakuru, in the Rift Valley province.
Kenya produces arabica coffee, favored by coffee shops such as Starbucks Corp. (SBUX) Export destinations for the African nation’s beans include Germany, the U.S. and Sweden, according to the Kenya Coffee Producers and Traders Association, which owns the exchange.
Sales climbed to 9,783 bags worth $1.85 million from 7,437 bags valued at $1.38 million a week earlier, the exchange said. Supplies rose 13 percent to 18,931 bags, it said.
Kenya harvests its early crop May through July, while the main crop is reaped from September through December, according to the KCPTA.
The following are details of yesterday’s auction in dollars per 50-kilogram bag:
Grade Low High Average AA 221 301 285.04 AB 131 218 177.81 C 91 165 142.57 E 242 242 242.00 HE 125 130 128.09 MH 76 120 112.06 ML 70 87 81.45 PB 124 212 191.46 SB 56 81 74.82 T 60 135 123.54 TT 124 155 141.80 UG1 76 151 121.79 UG2 65 110 89.85
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