Delays, defaults and poor quality, all these issues have started manifesting themselves recently; the low volumes flowing from interior to ECX are hampering usual activity. Other than in the South we are not expecting a lower volume this year however the normal flow continues to be restricted. Sales activity is also limited as prices asked by shippers remain very far apart from overseas buying levels. In addition Terminal market volatility only confuses the issue. Some shippers expressed their doubts that this year’s election would indeed take place during August as announced. On the bright side, things can only get better!
Table below shows the sales at ECX of the Main Natural qualities:
|MT @ 20 Feb||2018||2019||2020||Δ 20 – 19||Δ %|
Djimmah is up by nearly 500 MT reflecting the good crop is that region this year, whereas Lekempti is sharply down as a consequence of the insecurity situation and Sidamo, likewise down, reflecting the lower crop and increased vertical integration which will take coffee away from the exchange.
Birr continues its very slow devaluation vs the greenback, the currency has devalued less than 0.5% in the last 3 weeks.
Weather continues to favour cherry and parchment drying.
by Charles Seara Cardoso