Kenya's Benchmark Coffee Grade Falls for a Second Week

Kenya's benchmark coffee grade fell for a second time since the restart of weekly auctions last week after supplies increased, the Nairobi Coffee Exchange said.

The benchmark AA sold for an average of $271.42 for a 50- kilogram (110-pound) bag from $275.23 on Aug. 14, the exchange said today by e-mail from Nairobi, the capital.

Supplies of the grade climbed 21 percent to 1,798 bags, and it sold for as little as $156 and as much as $310 a bag, compared with last week's range of $198 to $340, it said. The average price for all the coffee sold dropped the first time since the restart of auctions, retreating 2.2 percent to $166.14 a bag, it said.

"Generally there was little demand from our overseas buyers," Mansukh Shah, a coffee dealer at Nairobi-based Alanwood Ltd., said by phone. "The quality of the beans was a bit low."

Sales at the auction fell to 10,605 bags worth $2.14 million from 10,695 bags valued at $2.21 million last week amid increased supplies, the exchange said.

Supplies at the auction climbed to 24,845 bags from 23,333 bags at the previous sale, the agency said. Kenya harvests its early crop from May through July, while the main crop is reaped from September through December. Its coffee season runs from Oct. 1 through September.

The following are details of today's auction in U.S. dollars for a 50-kilogram bag:

From: bloomberg.com