Again this week’s NY action has allowed shippers to sell more; those that held out for better prices over the past weeks are finally being able to move their stocks. Many of the larger shippers are in dire straits having sold larger volumes at prices below 100 c/lb find themselves unable to cover due to low volumes on offer at ECX and very high prices bid as there are many buyers for the reduced volumes. We are hearing that washouts and defaults are rife; shippers have meet government officials to voice their problems and ask for help in sourcing coffee. A major concern is the quality of coffee that shippers are receiving from ECX warehouses; exporters are eager to stamp out corrupt practices at ECX warehouses, where lots destined to be sold at ECX are being granted certificates of quality much higher than they deserve, leading to exporters paying high prices for low quality.
Covid rages on with a further 10,000 cases in the last week and a further >100 deaths attributed to the disease.
Birr is at 36.38 to the USD.
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