Coffee prices at the weekly Nairobi auction jumped by 13 percent, the highest margin this year, helped by higher prices at the world market.
The latest data shows that Coffee prices at the Nairobi Coffee Exchange (NCE) have increased to Sh40,419 for a 50 kilogramme bag from Sh34,818 in the previous sale.
The price of the commodity in the world market hit a high of 226 cents per pound (cts/lb) this week when compared with 200cts l/lb previously.
The price of coffee at NCE is normally benchmarked at the New York Exchange, where Kenya sells most of its produce.
“The rise in price was occasioned by an upsurge in international prices from about 200cts/lb to today's 226 cts/lb as well as better qualities offered for sale,” said NCE chief executive Daniel Mbithi.
High international prices have been occasioned by a shortage of the crop in the world market as Brazil which is one of the top world producers grapples with frost that destroyed most of the produce in that country.
The value of the beverage had dipped sharply last week on the back of low-quality beans offered for sale at the auction as the current season comes to an end.
The auction has started receiving new coffee from the main crop as the old one comes to an end. The produce is coming from central Kenya.
“We are now receiving some new crop from the main season though in small quantities,” he said.
The crop trading at the auction at the moment is being supplied from Eastern and parts of western Kenya and it is supposed to run the auction all the way to the end of November when the main season’s produce is expected to get to the market in low volumes with huge volumes expected in December.