Minimum Registration Prices set weekly by the Coffee & Tea Authority (CTA) have been irrelevant for the past few months; as the terminal market rallied exporters were able to find plenty of eager buyers at ever increasing flat prices. Infused by the 10 cent move last Friday, the CTA decided to up the prices that shippers can register new export sales and then the market lost everything it had gained the previous week. It has now become difficult for shippers to sell Washed coffee in particular, as Yirgacheffe 2 and Sidamo 2 Minimum Registration prices are 266 and 257 USC/LB FOB Djibouti, too high to find buyers. Natural Grade 5 coffee is still attractive at around -30/35 FOB but was more attractive below 40 under!
Logistics continue to be a struggle, usual lack of containers and slots on vessels with the added frustration of erratic schedules thrown in the mix making any sort of planning impossible; We remain optimistic that the situation will improve as the peak shipment period is behind us. However, declining imports could reduce further container availability…
Prime Minister Abiy appointed his Cabinet and included in his team 3 Ministers chosen from opposition parties. The hope now is that the new government can resolve the conflict raging in the North of the country, tackle inflation and return the country to the previous rapid economic growth path experienced before the Tigray conflict began.
On a lighter note, Ethiopia’s Sisay Lemma won the 2021 London Marathon held last weekend in the streets of the UK’s capitol city.
Birr 46.44 = USD 1
Have a good weekend