Coffee earnings grew 17 percent in this week’s auction on the back of higher volumes and prices of the commodity, with the market witnessing a limited supply of high-quality grades.
The earnings in Kenya Shillings are expected to keep rising in line with the depreciation of the local currency against the US dollar.
The volume of coffee offered for sale increased to 24,610 from 21,258 bags of 50 kilos in the previous trading.
Coffee earnings grew 17 percent in this week’s auction on the back of higher volumes and prices of the commodity, with the market witnessing a limited supply of high-quality grades.
Data from the Nairobi Coffee Exchange (NCE) shows the market recorded a turnover of $7.1 million (Sh816 million) this week when compared with $6.06 million (Sh697 million) that was witnessed last week.
The earnings in Kenya Shillings are expected to keep rising in line with the depreciation of the local currency against the US dollar.
Average prices at the auction this week increased to $236 (Sh27,128) up from $232 (Sh26,668) in the previous sale to reverse a streak of poor performance recorded in the last six sales.
The volume of coffee offered for sale increased to 24,610 from 21,258 bags of 50 kilos in the previous trading.
Prices of the commodity were helped by a marginal increase in supply of quality coffee for the medium grades in the market that pushed up the demand from buyers.
“There were a few quality offers that propped prices slightly,” said NCE chief executive officer Daniel Mbithi.
The price of Kenya’s top-grade coffee AA declined marginally during the latest auction while grade AB edged up slightly.
A 50-kilo bag of Grade AA earned $311 (Sh35,749) from $313 (Sh35,979) in the previous sale while AB fetched $269.85 (Sh31,019) from $268 (Sh30,807) in the previous sale.
The price of coffee has been declining in the last one month to below the $300 (Sh34,485) mark that the market has been recording since the beginning of the crop year in October 2021.
Higher prices seen earlier had been supported by an increase in quality beans that have been streaming at the auction and a steady international price.
