Kenya top coffee price rises at auction, volumes fall

NAIROBI (Reuters) - The top price of Kenya's benchmark AA coffee grade rose to $372 per 50-kg bag at auction on Tuesday from $324 per bag last week, the Nairobi Coffee Exchange (NCE) said. Kenya is a relatively small coffee grower compared with other producers, but its speciality coffee is known for its quality and is much in demand from roasters who blend it with coffees from other nations. NCE said Grade AA sold at $372-200 per bag, compared with $324-169 last week. Grade AB fetched $257-$142 per bag, compared with $234-$96 last week. It said 11,818 bags of coffee were offered, with 3,330 sold at an average price of $178.43 per bag, earning a total of $0.7 million. Last week, 13,847 bags of coffee were offered, and 6,775 sold at an average price of $174.25 per bag, fetching $1.4 million. Kenya cut its coffee production and export earnings projections for the 2012/13 coffee year, which runs from October to end-September, due to poor global prices and reduced crop acreage. Its main coffee harvest usually runs from November to December, with the best quality beans sold first once dried and processed. Sales tend to peak around February and March. AA grade coffee was selling at more than $500 a bag in late March and the start of April. The grade refers to size and density, rather than bean quality.