Interest and overseas business picked up considerably in the last week; with Year-End reports finalised and with New Crop requirements yet to be purchased buyers started showing interest in Ethiopia both Washed and more noticeably Naturals. New business interest for long strings, up until the end of 2020. At origin, shippers starting to take notice of the relentless decline in the C market and particularly those that are long through washing station ownership or vertical integration scratch their heads. Offers for Sidamo 2 are now well over +100 FOB and with the premium for Sidamo over Limu now at around 50 cents it is clear that Southern coffees will be pricey this season. Origin offers for Naturals are also trading at well above normal levels however ECX flows remain low (as is expected this time of the year).
Rumours of Locusts eating coffee cherries and trees in Sidamo, Guji and Yirgacheffe have been surfacing in the last few days, this is no more than scare mongering of behalf of those choosing to spread them! Locusts have been plaguing Ethiopia in recent weeks but alas they do not like coffee!
Weather is normal for this time of the year sunny and hot.
At ECX prices are firm Naturals trading at FOB + double digit differentials and Sidamo 2 at > +100 FOB equivalent.
Next week there is a coffee conference in Addis, a good forum for industry stakeholders to discuss their current issues, i.e. Minimum Price Regulation, C market decline and Slow Flow of coffee to ECX. We shall keep our ears to the ground and report any interesting views and news.
by Charles Seara Cardoso