Once again this season Monthly Exports raise eyebrows. November shipments totalled 25 K MT a new record for the month of November, higher than the quantity shipped in October at a period when normally shipments are decreasing.

Logistics are improving this month of December, container availability seems to be easier and coffee is moving faster from the mills in Addis onto a vessel in Djibouti. We expect that current shipments are lighter than in previous months, but this year has been full of surprises.

Meanwhile the crop is progressing well. In some regions like the South West and West over 70% of the cherries have been picked. In the South (Sidamo, Guji and Yirgacheffe) approximately 50% has been picked. Cherries prices have been increasing since the crop is lower, reaching Birr 50 per kg Cherry, however, contradictorily not all washing stations are working or if open, operating at full capacity due to lack of cash to buy cherries. It does appear that this season will yield a higher proportion of Naturals due to less cash being available at farm gate level. In addition, we feel that shippers have less Washed coffee commitments with overseas buyers this season and this is decreasing the pressure to secure parchment.

The main story about the war continues to be that TPLF continues to be on the back foot since government forces pushed the front back from the doorsteps of Addis Ababa to the border of Tigray region. Rail and road links to Djibouti are no longer under threat of attack since the tide turned in favour of Government forces. Meanwhile, the humanitarian crisis continues unabated with approximately 10 Million people in need of aid, according to the U.N.

 For an explanation on the current situation please follow the link: https://www.bbc.com/news/world-africa-59552888

Birr 48.55 = USD 1

Have a good weekend.

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