The value of the Kenyan coffee at the auction declined 10 per cent during this week’s trading following a sharp drop in prices at the New York Exchange where the country trades its beverage.
The price of coffee in the world market dropped from 129 US cents per pound last week to 118 US cents this week.
The decline has reversed gains witnessed last week where the market registered one of the best performances since the beginning of the crop year, chalking up 19 per cent growth from the previous sale.
Market report from Nairobi Coffee Exchange (NCE) shows a 50 kilogramme bag of coffee on average traded at Sh21,115 down from Sh23,587 recorded Tuesday last week.
According to the NCE, the prices at New York dropped 10 cent per pound this week, hitting the local auction prices.
“The New York exchange where we trade our commodity was down this week and that is the reason why our local prices dropped,” said Daniel Mbithi, chief executive at NCE.
Last week the prices were boosted by good quality crop coming in from central Kenya after the short-term crop from eastern ran out.
The auction has been experiencing a shortage of good quality crop in the recent days forcing trading to be suspended in order to accumulate enough crop to sustain the next sale.
The crop from central had been slowed by bad weather that saw coffee take long to dry before milling.