The second-to-last sale of Kenyan coffee on Tuesday resulted in a 23 percent rise, according to the Nairobi Coffee Exchange.
Bloomberg reports one trader noted the increase occurred as one trading session remains this season.
"Prices rallied because people were covering their short positions since we only have one more auction left," Mansukh Shah, a trader with Alanwood, told the news service while in the East African country's capital city of Nairobi. "Quality was low but prices rose because of the high demand."
Shortly after 12:30 p.m. on Wednesday, coffee futures increased 2.42 percent, a 0.067 rise to $2.836 per pound.
Coffee's average price increased to $300.16 per 110-pound bag. During the week prior, the average price was $244.50, according to an email from the exchange.
The East African nation is working on reviving output of the commodity amongst small-scale farmers. The high point of coffee production was 100,000 metric tons in the 1988-1989 season and it is likely to be around 40,000 metric tons this season, a manager at the Coffee Board of Kenya said earlier this year.
Analysts attribute the decrease to global prices slumping and disorder in managing farms.
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