That’s right, the 12 month period March 21 to Feb 22 accumulated 5.18 Million bags in Exports! Exports to Saudi Arabia and Europe in February flushed out the remaining Grade 5s from the 20/21 crop as Brazil logistical woes and high prices were no match for Ethiopia proximity (in the case of Saudi) and very competitive prices. Exports for the period 21/22 were higher by 1.49 Million bags vs 20/21, that equates to a 40% increase year-on-year.
With the world intensely focused on the war in Ukraine, there is little coverage from media outlets on the Ethiopian internal conflict. What we can report is that the internal conflict is not impacting the coffee supply chain. While security concerns remain in some coffee growing areas, which are delaying and hampering certification inspections, the flow of coffee along the supply chain is progressing practically unaffected. Parchment and Naturals are arriving in Addis and warehouses there are full, likewise processed coffee is finding containers and transportation from Addis to Djibouti.
Export sales this week remained sporadic and spotty. Shippers continue to focus on fulfilling previously concluded contracts established when the terminal market was at much higher levels. Offered prices, which are not that easy to come by, are at very expensive levels limiting business activity. In the interior, traded prices between middlemen and shippers remain at Birr 4,000 ( 230 usc/lb FOB equivalent) for Natural Grade 5 coffees. These levels are not sustainable while future level are in the mid-230’s. Much more activity/interest in spot Europe market.
On forex markets the Birr actually appreciated vs the Euro, as the single currency took a beating vs the greenback.
Birr 50.84 = USD 1
Have a good weekend.