The crop picking and processing is developing well, below our estimate of what has already been picked in the different regions:

Djimma                65-70%

Wellega/Limu    55-60%

Sidamo                 45-50%

Guji                        20-25%

Yrgacheffe          < 20%

Weather has improved over the past week benefitting ripening and drying, in other words, less rain and more sunshine! Our concerns that the weather could impact this season’s quality have greatly diminished in December.

Prices for cherry are still very firm in the Southern regions between 17 Birr and over 20 Birr per kg of cherry; this will keep differentials high, negating the C bull run of recent days and weeks. Shippers are well sold, having taken advantage of the H early push to 125 and now rather cautious and unsure of what prices will have to be paid to cover shorts since only a small volume of the new crop is reaching the market. Current flat priced offers from shippers translate to firm differentials, particularly for washed coffees since many of our suppliers have washing stations or offtake agreements with washing station owners and are seeing cherry prices giving them FOB prices for Sidamo and Guji well over 200 c/lb. Differentially prices for Naturals have decreased considerably in the last 4 weeks however they are now fairly firm considering that the C continues to rally, today Lekempti 5 and Djimma 5 are trading 20 and 24 under May FOB L/C for March/April shipment same as last week.  

by Charles Seara Cardoso

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