The top price for Kenya's benchmark AA coffee declined to $604 from $701 per 50-kg bag at the previous sale, data from the Nairobi Coffee Exchange (NCE) showed on Wednesday. However, the lowest price for AA grade at the sale held on Tuesday increased to $250 from $241 at the previous auction two weeks ago.
Overall, the average price for all Kenyan coffee grades also increased to $341.22 from $295 with 16,127 bags sold out of the 23,421 on offer. The high cost of the coffee has been attributed to low supply of the commodity due to the rainy season. "We expect the high coffee prices to continue to early next year," said Peter Kinyua, director Servicoff Limited. Ethiopian AB grade is fetching $280 per bag, much cheaper than the average $388 for the same quantity of Kenyan AB, Kinyua said, adding that Kenyan coffee could lose out to cheaper markets.
"The high coffee prices mean that the global market is looking to other regions with lower prices to blend coffees with that of other countries," he said. The next auction in a fortnight will be this year's last, Kinyua said. The next sale will be in early January.