By Nelson Mandela Muhoozi
The Thursday, October 24, 2024, coffee market trends have revealed notable fluctuations in future prices, driven by key developments in leading coffee-producing countries such as Vietnam and Brazil.
The London International Financial Futures and Options Exchange (LIFFE) has indicated a significant dip in Vietnam’s coffee export performance for the 2023/24 coffee year.
The export volume stands at 24,307,866 bags, significantly lower than the same period in the previous year.
As for coffee futures, the January position closed at $4,443 (about sh16.26m) per ton, reflecting a gain of $18 (about sh65,880) from the previous closing.
The March position also showed an increase, closing at $4,357 (about sh15.95m) per ton, up by $22 (about sh80,520) from the previous trading session.
On the International Commodity Exchange (ICE), reports suggested that Brazil, another major coffee producer, is still grappling with the effects of drought.
The impact of the drought on coffee crops is under close watch, particularly as flowering continues, with experts believing it will take some time to gauge the full effect on the yield for the 2025 crop.
The December position on ICE closed at US 252.35 cents (about sh9,236) per pound, gaining 2.50 (sh915) cents, while the March position ended at US 251.05 cents (sh9,188) per pound, rising by 2.30 cents (sh841) compared to the previous close.
Domestic coffee market
On the domestic front, the Uganda Coffee Development Authority’s (UCDA) report for October 24, 2024, highlighted stable prices for both Robusta and Arabica coffee.
Robusta Screen 15 sold for sh17,176 per kilogram, with a total volume of 4,618 60kg bags being traded.
Robusta Screen 18 sold for 17,580 per kilogram, with a total volume of 1,295 60kg bags traded while Robusta Screen 12 sold for 16,934 per kilogram, with a total volume of 3,340 60kg bags while Drugar sold for 18,264 per kilogram, with a total volume of 10 60kg bags.
Farm gate prices slightly rise
UCDA report also indicated stable farm gate prices across Uganda. Fair Average Quality (FAQ) coffee fetched between sh13,000-13,500 per kilogram, while Kiboko coffee fetched between sh6,800-sh7,500 per kilogram.
Arabica parchment prices ranged from sh12,000-12,500 per kilogram, while clean Drugar coffee was sold for between sh11,500-12,000 per kilogram.
