By Nelson Mandela Muhoozi
International coffee futures markets showed mixed performance this week as coffee futures on both the London International Financial Futures and Options Exchange (LIFFE) and the International Commodity Exchange (ICE) registered declines.
However, Uganda’s local coffee market maintained steady farm-gate prices, reflecting a promising market outlook for farmers according to the coffee futures market update for Thursday, November 7, 2024.
Global market overview
In the LIFFE market for Robusta coffee futures, Vietnam, the world’s largest producer of Robusta coffee, saw a 1.50% increase in exports in October, with a total of 733,333 bags exported.
However, prices showed declines. The January position closed at $4,307 (UGX 15,775,048 per ton), a decrease of $65 (sh238,160), while the March position closed at $4,248 (sh15,535,872 per ton), down by $55 (sh201,520) from the previous closing.
The ICE Arabica coffee futures also posted moderate losses, with the recent rally in the US dollar index reaching a four-month high, affecting the pricing of several commodities, including coffee.
Arabica’s December position closed at 248.75 US cents per pound, a drop of 1.40 US cents (sh51), while the March position settled at 248.05 US cents per pound, losing 1.35 US cents (sh49) from its previous close.
Domestic market overview
Uganda’s domestic prices for coffee at the farm-gate level held steady, with promising sales reported across quality categories.
The Uganda Coffee Development Authority (UCDA) reported that Robusta coffee Screen 18 was traded at sh17,100 per kilogram, with a total volume of 1,920 bags, each weighing 60 kilograms, sold in recent transactions.
Robusta Screen 12 fetched sh16,697 per kilogram, with 4,560 bags sold, maintaining strong demand.
For Fair Average Quality (FAQ) coffee, prices remained stable, ranging between sh12,500 and sh13,000 per kilogram. Kiboko coffee commanded prices between sh6,000 and sh7,000 per kilogram, reflecting robust demand for coffee of varying quality.
Arabica coffee prices also held firm, with parchment coffee trading between sh12,000 and sh13,000 per kilogram. Drugar, a type of clean Arabica, was priced from sh11,000 to sh12,000 per kilogram.
Martin Maraka, CEO of Uganda Coffee Federation said demand for Robusta coffee is climbing up as farmers gear up for the next harvesting season.
