KAMPALA — Robusta coffee prices recorded a modest increase of 2.1% to 75.60 US cents, a kilogramme in March. This is the first monthly increase since October and the highest level in 2016.
The International Coffee Organisation (ICO) said last week, ‘Exports have maintained their high volumes, with total shipments so far this coffee year up 2% compared to 2014/15. However, speculation over potential supply concerns, particularly in Robusta, is mounting.’
ICO said the decline towards the end of the month was much less pronounced in Robustas, perhaps supported by concerns over future supply.
Drought is also affecting supply expectations in Vietnam and Espirito Santo in Brazil, which could lend support to Robusta prices in the near future.
Total exports in February 2016 increased by 1.7% to 9.2 million bags, with a drop in Robusta exports of 8.9% more than compensated by an 8.1% increase in Arabicas. This brings the total exports for the first five months of coffee year 2015/16 (October to February) to 45.2 million bags, up 2% on the same period last year.
Sam Okwakol
