Happy New Year, may 2021 be a little more predictable than 2020!
In attempting to address Exporters’ sourcing problems the Coffee and Tea Authority (C&TA) has allowed shippers to sell coffee between themselves increasing liquidity in the internal market, we see this as a positive move allowing those exporters that have coffee but no export market to offload excess stock and free cash while permitting short shippers to tap into an alternative supply to fulfil commitments. Meanwhile at ECX, volumes on offer are smaller when compared to this time in previous years. Traders are still upset with the C&TA meddling with prices, in particular capping the maximum price coffees can fetch at ECX. ECX Warehouse stock levels remain low when we would expect these to be building up. The problem with delayed shipments continues with no end in sight… A further consequence of diminished activity internally is a reduction in offers from shippers, particularly in lower grades (Grades 4 and 5).
National Bank of Ethiopia Minimum Registration prices for Exports (also set by the C&TA) remain too high for Washed Qualities buyers, bid levels are around 30 cents below offered levels.
USD 1 = Birr 39.20
Have a good working week, and Merry Christmas to our Ethiopian friends.