Markets & Finance

Kenyan coffee prices dip at latest auction

Coffee

Coffee Beans. The top price of Kenya's benchmark coffee grade AA dipped to $301 per 50kg bag from $328 at auction a week earlier, the Nairobi Coffee Exchange (NCE) said on Wednesday. Photo/FILE

The top price of Kenya's benchmark coffee grade AA dipped to $301 per 50kg bag from $328 at auction a week earlier, the Nairobi Coffee Exchange (NCE) said on Wednesday.

Kenya is a relatively small producer but its high quality beans are valued for blending with those from other countries.

A bag of grade AA sold this week ranged from $301-$221 per 50kg bag, compared with $328-$182 a week earlier, while a bag of grade AB fetched $218-$131 this week compared with $228-$120 a week before, the exchange said.

Kenya's main coffee harvest usually runs from November to December, with the best quality beans sold first once dried and processed. Sales tend to peak around February and March.

AA grade coffee was selling at more than $500 a bag in late March and the start of April. The broad trend is for lower quality beans to be offered further from harvest time.

The grade refers to size and density, rather than bean quality. Kenya's second, smaller crop tends to be harvested from May to June. Weather can change the timings for harvests and sales.

Some 18,931 bags of coffee were offered, with 9,783 bought. That compares with 21,780 bags offered for sale last week, when 7,437 bags were bought.

The beans fetched $1.85 million with an average price of $155.36 per bag, compared with $1.38 million sold last week with an average price of $152.66 per bag.