Following some very decent volume of business enabled by the recent rally in NY, business has come to an abrupt halt as ECX and Exporter offering prices have risen and the terminal market price declined. Volumes at ECX continue to disappoint and shippers in need to cover recently established shorts scramble for the reduced volumes on offer. Below the current sales at ECX at 15th September and the volumes at the same time in 2019 and 2018:
In addition to the lower traded volumes, the quality of the lots sold is much poorer than in previous years, meaning that shippers are ending up with a higher percentage of local market products and less exportable quality from what is purchased. We have not seen recent official export figures but we suspect that these will also be down on last year’s.
Daily Covid cases and casualties have declined in Ethiopia in last 2 weeks, the country is seemingly moving in the right direction.
Slow but sure devaluation of the local currency, currently 36.54 vs the USD.
Have a good weekend.
By Charles Seara Cardoso