It is Christmas Day in Ethiopia!
Offers for the 20/21 crop have all but dried up, we truly feel that there is nearly nothing left unsold. Shippers are only offering New Crop 2021/22. We estimate that over 70% of the crop has now been picked and in the lower lying areas there is very little left unpicked. It is more in the Southern Highland areas where there are cherries on the trees. Regions like Guji and Yirgacheffe will continue to harvest into February, whereas Benji Maji, Kaffa and other more Western areas have nearly exhausted the harvest.
Prices offered are all over the place, with Washed Grade 2 Southern Coffees offered at prices ranging from 310 and 370 usc/lb FOB. Buying interest at these elevated prices is muted, however reflect the high cherry prices paid by Washing Station owners and probably reflect more the lower production in the Southern Regions than the limited cash availability at farm gate level this buying season. Indeed, it is our understanding that banks have been less engaged in financing the crop this season than in the past. Additionally, higher prices have discouraged stakeholders fearful that selling prices will not yield a margin.
Overseas demand over the festive season and first few days on 2022 has been limited, additionally, shippers’ offers have been limited or at prices that are uncommercial, therefore trading has been slow. Coffees will soon start to arrive in Addis for processing in larger volumes and pressure to sell and ship will begin to mount, then prices will start to become more commercially viable, for now trading is a tad side-lined.
There has been very little news concerning the fighting between Government forces and Tigray rebels. With the front line having moved much further away from Addis than it was a month ago concerns that harvesting, processing and shipping could be affected by the instability have faded.
Birr 49.32 = USD 1
Have a nice weekend