Coffee prices in this week’s auction experienced a marginal increase, yet fell short of reaching the $200 mark, reaching $197 from the previous $196, according to market data from the Nairobi Coffee Exchange (NCE).

This uptrend has persisted since the commencement of the year a major boost to farmers who rely on the crop.

The positive price movement can be attributed to robust demand from buyers, fueled by a global market shortage exacerbated by stockpiling activities by some prominent producers.

Limited coffee supplies have prompted fund buying in the futures market, as indicated by ICE coffee inventories, which reached a historic low of 3.311 lots last Friday.

The tightening of Robusta coffee supplies is anticipated to continue, with reports indicating that Vietnamese farmers, the leading Robusta producers, are holding onto their produce in anticipation of favorable prices.

During the sale, the total value of all coffee grades amounted to $5.8 million, surpassing the $4.1 million realised in the previous sale.

In the latest auction, Kenya’s premium coffee-grade AA witnessed a decline, with a 50-kilo bag fetching $254, down from the previous $258.

Conversely, Grade AB, ranked second in terms of quality, experienced an increase in value, with a bag fetching $203, up from $200 in the previous sale.