By Nelson Mandela Muhoozi
The global coffee futures market experienced a downturn on Wednesday, with price pressures impacting both Robusta and Arabica contracts.
On the London International Financial Futures and Options Exchange (LIFFE), Robusta coffee futures closed lower, reflecting a pullback in tandem with the New York market.
The January 2025 to March 2025 contract arbitrage between the London and New York markets narrowed to 58.77 Usc/Lb.
The January position for Robusta coffee closed at $4,656 (about sh17.01 million) per ton, reflecting a loss of $79 (sh289,851) from the previous close.
The March position also weakened, closing at $4,609 (sh16.91 million) per ton, marking a drop of $66 (sh242,154).
Meanwhile, the International Commodity Exchange (ICE) for Arabica coffee futures also faced challenges.
According to exchange data, prices were weighed down by uncertainty stemming from the European Union’s delayed deforestation regulations, which have postponed planned adjustments to coffee and cocoa contracts until the end of 2025.
The March position for Arabica coffee settled at 281.30 US cents per pound (sh10,320 per pound), down by 0.90 US cents (sh33). Similarly, the May position declined to 279.30 US cents per pound (sh10,247), losing 0.85 US cents (sh31.3).
Experts said the fluctuations highlight the ongoing volatility in the coffee futures market, driven by regulatory uncertainties and global trading dynamics.
Daily coffee market prices in US Cents Per Lb. – 11/22/2024.
According to the Uganda Coffee Development Authority market update, Robusta Screen 18 sold for sh18,404 at volumes sold of 1,280 (60-Kilo Bags) while Robusta – Screen 15 went for sh18,000 at volumes sold of 4,560 (60-Kilo Bags).
On the other hand, Arabica prices for Wugar settled at sh22,187at volumes sold of 600 (60-Kilo Bags).
Note: Price (sh/kilo), Exchange rate (1 US$ =sh3,669)
Coffee farmgate price range in sh/kilo
