Kenyan coffee prices eased at this week's auction due to falling prices in New York, traders said on Wednesday. The Nairobi Coffee Exchange said a total of 29,574 60-kg bags were offered at the auction, held on Tuesday, and 15,550 sold. At last week's sale 26,474 60-kg bags were offered and 15,791 sold.
Top grade AA fetched $300-$162 per 50-kg bag, compared with last week's $367-$177 per bag. AB fetched $250-$132 per bag compared with $311-$140 at the previous sale. "Generally with the New York (market) collapsing, prices in the auction also followed suit across the board," said Chris Ransley, managing director of Ransley Coffee Company. NCE said the average price per 50-kg bag dipped to $182.57 from $188.67 per bag last week. Coffee prices in Kenya, which largely produces arabica beans, take its cue from New York. Arabica coffee futures on New York's ICE fell to a 7-week low on Monday driven by heavy fund selling.
Kenyan coffee authorities have cut 2007/08 (October-September) harvest projections to about 42,000 tonnes due to Coffee Berry Disease. Kenya produced 54,340 tonnes in the 2006/07 crop year. It is a small producer compared with growers worldwide, but its much sought-after arabica beans are reputed for their quality and usually blended with coffees from other regions.
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