Robusta coffee futures rise as Arabica hits two-week low

_______________

The global coffee market experienced mixed trends in Monday's trading session, with Robusta futures on the London International Financial Futures and Options Exchange (LIFFE) showing gains, while Arabica futures on the International Commodity Exchange (ICE) faced declines.

Robusta coffee futures in London closed higher, recovering 54% of earlier session losses. The May position gained $62 (sh227,602) to close at $5,717 (sh20,982,707) per ton, while the July position increased by $60 (sh220,260) to settle at $5,670 (sh20,805,570) per ton.

Meanwhile, Arabica coffee futures in New York declined, hitting a two-week low as a rebound in Arabica inventories triggered long liquidation pressures.

The May position lost 0.65 US cents (sh23.86) to close at 389.25 US cents (sh14,287.52) per pound, while the July position dropped by 0.65 US cents (sh23.86) to settle at 378.90 US cents (sh13,913.42) per pound.

Uganda’s coffee market performance

According to the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF) data on Monday, February 24, 2025, Uganda’s coffee market remained robust, with notable price increases compared to the previous session.

Today’s trading session indicates that Robusta coffee prices stood at Robusta Screen 18 selling for sh22,267, while Screen 15 sold for sh21,863 and Screen 12 went for sh21,621.

Arabicas like Bugisu AA sold for sh31,038, while Bugisu A went for sh30,958 and Bugisu PB traded for sh30,958.

Farm gate prices increase

At the farm gate level, the performance of coffee remained strong, with notable price increases compared to the previous session based on quality and type.

FAQ sold for between sh15,500 and sh16,000, while Kiboko sold for between sh8,000 and sh8,500. Arabica Parchment sold for between sh13,500 and sh14,500, while Drugar Coffee (Clean) sold for between sh19,500 and sh21,000.

Industry outlook, expert analysis

Market analysts predict Uganda’s coffee sector will remain positive in the coming years, provided key factors such as quality control and government intervention are prioritised.

Dr Michael Mugabira, a coffee farmer and industry expert, emphasised the need for strategic government involvement.

“The positive pricing trend is expected to continue. However, the government must focus on deliberate interventions to boost production and productivity in both coffee and cocoa sectors,” Mugabira stated.

He further stressed the role of quality control in determining global coffee prices. “Global prices are influenced by grading. If farmers harvest immature beans, it leads to black beans, which ultimately translates into revenue losses for the economy,” he said.

Bernad Sabiti from Besmark Coffee Company said the farmers are benefiting from favourable market prices, but the traders are not gaining that much. The prices are good, but the demand is low, and this affects the traders and exporters.

“This could be resulting from roasters losing interest. Maybe the roasters want to first roast what they have before they can demand more. You know coffee is bought through differentials, and these are coming down. Prices could be shooting up but meaningless in terms of the gains for exports,” Sabiti said.

With Uganda's coffee industry playing a critical role in the country’s export earnings, Mugabira asserted that improving quality standards and increasing production volumes will be vital in sustaining competitiveness in the global market.