Coffee prices at Nairobi exchange reverse two-month decline

Kenyan coffee fetched more at the Nairobi Coffee Exchange (NCE) on Tuesday, reversing a two-month trend of declining prices.

Premium grades attracted good bids despite stable prices at the New York arabica market, pulling up the average price.

Grade AA, the country’s benchmark quality, fetched a high of $320 (Sh27,520) compared to last week when it attracted $311 (Sh26,746) per 50 kilogramme bag.

Grade AB, the second best coffee in terms of quality, was sold at $278 (Sh23,908) this week compared to $261 (Sh22,446) last week.

“The New York price has improved and the fact that we are currently receiving good quality coffee from Nyeri has helped in pushing up local prices,” said Coffee Board of Kenya acting managing director Isabella Nkonge.

Overall, prices went up by $14 (Sh1,204) to sell at $238 (Sh20,468) from $224 (Sh19,264) in the previous auction even as the main crop season draws to an end.

Losing streak

NCE executive officer Daniel Mbithi said the coffee had been on a losing streak since February because of low quality beans.

READ: Coffee prices flat on release of hoarded beans

“Since the coffee that was being held in Sagana started coming to the market, we have witnessed an improvement,” said Mr Mbithi.

About 7,000 tonnes of coffee from Nyeri were released to the market early this month, stabilising prices for two consecutive auctions before this week’s surge.

At the New York Coffee Exchange, the beverage hit a high price of $2.07 per pound (Sh178), the same price that it was trading at when local prices were at $292 per 50 kilogramme bag in February.

Mr Mbithi said that it was unlikely that local prices would rebound to $292 per bag at the moment even with the high prices at the world’s leading coffee exchange.

Mrs Nkonge, however, said the average price for the year was expected to be better than the low of $156 (Sh13,416) realised last year.

Expects expect global prices to remain high for the rest of the year because of a biting drought in Brazil, the worlds leading producer, which will stifle supplies.