New Crop offers is well and truly here, shippers are now aggressive sellers in all qualities. What is noticeable is the very firm price for all Washed Coffee qualities, which is a direct consequence of the reduced availability viz a viz last year’s production. Washed Sidamo 2 is offered at 310 to 350 usc/lb FOB and Yirgacheffe 2 is a few cents higher. Even Limu 2 is under pressure offered at 270 c/lb FOB. There is clear resistance from roasters to pay the asking prices so something will have to give. 2021/22’s lower production could eventually lead to higher traded differentials which seems hard to justify when we consider the terminal market has doubled in value during 2021. Natural prices are within expectation, with Djimmah 5 trading at 30 under FOB with Lekempti 5 a few cents higher and Sidamo 4 currently at around -15 FOB.
December shipments came in at a tad shy of 16 k MT, which is lower than previous months but still a record December, keeping us on track for a 5 Million bag Export year (March 21 to Feb 22).
Have a good weekend.