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Kenya's coffee prices rose on aggressive buying by exporters ahead of a month-long seasonal break that starts next month, the Nairobi Coffee Exchange (NCE) said on Tuesday. The average price for Tuesday's auction was $103.15 per 50-kg bag compared with $88.99 at the previous sale.
"The volume was low, so the auction was competitive but the quality is also low, so the prices did not shoot up," an official of the NCE said. Only 4,917 60-kg bags were offered for sale compared with 8,721 bags at last week's sale. Kenya is not a big producer of coffee but its top quality beans grown in highlands near Mount Kenya are used to blend coffees from other origins.
The auction will take an annual month-long break from August 2 and resume on September 5. According to a market report by the NCE, top and bottom prices for AA grade stood at $183-$169 per 50-kg bag compared with $200-$91 at last week's sale. Grade AB sold at between $142-$99 per bag compared with last week's $200-$91 per bag.

Copyright Reuters, 2006

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