The global coffee market witnessed a decline in futures prices, with both Robusta and Arabica experiencing losses due to weather conditions and market projections, according to the market update on March 28, 2025.
The London International Financial Futures and Options Exchange (LIFFE) reported a drop in Robusta coffee futures, as the Vietnam Coffee and Cocoa Association estimated a 5.35% decline in production, forecasting 26.50 million bags for the 2024/25 coffee year.
The May position for Robusta closed at $5,351 (sh19,583,460) per ton, registering a loss of $86 (sh314,760), while the July position dropped to $5,361 (sh19,620,060) per ton, losing $82 (sh300,120) from the previous closing.
Similarly, Arabica coffee futures on the International Commodity Exchange (ICE) fell due to forecasts of rain in Brazil, which is expected to alleviate dryness concerns in key coffee-growing regions. Meteorologist Climatempo projected widespread showers across Brazil in the coming week.
The May position for Arabica closed at 379.80 US cents (sh13,897.68) per pound, losing 13.20 US cents (sh482.64), while the July position settled at 374.95 US cents (sh13,738.17) per pound, down by 11.20 US cents (sh409.92) from the previous closing.
Martin Maraka, CEO of the Uganda Coffee Federation, said he suspects that global weather patterns and production shifts in major coffee-producing countries could be behind the current market situation.
“The coffee trees have suffered from previous weather issues, thus affecting production. In fact, even in Uganda, we are expecting a drop in production of about 15 percent. So, it’s a weather-orchestrated issue affecting the globe,” he explained.
Uganda’s local coffee market
Meanwhile, Uganda’s local coffee market has remained relatively stable, with farmgate prices holding steady across different coffee types, according to data from the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF).
Market updates show that Robusta Screen 18 sold for sh20,900 per kilogram, Screen 15 fetched sh20,500 per kilogram, while Screen 12 was priced at sh20,258 per kilogram.
For Arabica coffee, Bugisu AA continued to trade at sh30,242 per kilogram.
Farmgate prices remain steady
Farmgate prices remained stable across different coffee varieties. Fair Average Quality (FAQ) Robusta traded between sh14,500 and sh15,000 per kilogram, while Kiboko (unprocessed Robusta) ranged from sh7,000 to sh7,500 per kilogram.
Parchment Arabica traded between sh14,500 and sh15,500 per kilogram, while Drugar (Dry Uganda Arabica) ranged from sh14,000 to sh15,000 per kilogram.
Regarding the local market, industry experts attribute the stability of Uganda’s coffee prices to consistent demand and a steady supply chain.
