Another holiday in Ethiopia today, slowing things down when we need them to pick up!
Offers from shippers have all but dried up; As NY continues it’s drive upwards, Agrabes are getting emboldened and only release upcountry stocks at ever increasing prices. Offers at ECX are down to a trickle. Up country prices have exploded, in Sidamo the FOB equivalent for Grade 2 is 250 usc/lb and for Grade 4 160 usc/lb FOB. Shippers are therefore very focused on executing existing commitments struggling to first prise coffee from suppliers, and then empty containers and slots on vessels from shipping lines. There is plenty of coffee in Ethiopia, the struggle is to get it moving along the supply chain and on to vessels.
Politically the situation in Ethiopia is worsening, President Bidden has demanded the cessation of hostilities in Tigray and imposed sanctions in an attempt to stop atrocities being committed by Eritrean and Ethiopian forces in the region. The Ethiopian PM wants the US to stop meddling in what he perceives has Ethiopian internal affairs. Pls follow the link for the BBC’s take on the current political situation: https://www.bbc.com/news/world-africa-57266110
Covid cases and related deaths continue on a downward trend, to the relief of everyone.
The postponed General Election is due to be held on June 21st; let’s hope this time it actually happens!
Forex: Birr 43.00 to the USD
Have a good weekend.