By Nelson Mandela Muhoozi
Wednesday, November 6, 2024, coffee futures update indicate that prices surged on Tuesday as reports from the London International Financial Futures and Options Exchange (LIFFE) and the International Commodity Exchange (ICE) indicate gains in futures, driven by concerns over production in Brazil and market stability in London.
On the global front, the London market closed with a notable rise in prices. The January position saw a $54 increase, closing at $4,372 (sh15,979,660) per ton, while the March position also rose by $54, closing at $4,303 (sh15,728,515) per ton.
Despite the gains, the London market retained 51.84% of its earlier advances, signaling a continued upward trend amid investor confidence.
Similarly, the ICE reported an uptick in coffee prices, driven by abnormally dry conditions in Brazil, the world’s largest coffee producer.
December coffee futures closed at 245.95 US cents per pound, up 3.00 US cents, while March futures settled at 244.95 US cents per pound, a gain of 2.55 US cents.
The increase reflects concerns over reduced yields due to challenging weather, adding pressure on global coffee supplies.
Domestic market overview
Locally, coffee prices remained steady at farm-gate level, with promising sales and stable rates reported by the Uganda Coffee Development Authority (UCDA).
Robusta coffee, specifically screen 12, traded at sh16,651 per kilogram, with a total volume of 1,336 bags sold, each weighing 60 kilograms.
Fair Average Quality (FAQ) coffee prices held between sh12,500 and sh13,000 per kilogram, while Kiboko coffee commanded rates between sh6,000 and sh7,000 per kilogram, reflecting strong demand across quality categories.
Meanwhile, Arabica parchment prices ranged from sh12,000 to sh13,000 per kilogram, and Drugar (clean) was priced between sh11,000 and sh12,000 per kilogram.
The robust market performance both internationally and locally points to a potentially lucrative season for Uganda’s coffee farmers according to experts, as global production concerns and steady domestic prices highlight coffee’s critical role in the national economy.
