Coffee Futures Fall as Supply Outlook Improves -- Market Talk

Robusta coffee futures fall, extending the previous session's decline. Liffe

January robusta coffee is presently down 0.7% at $1,758/tonne, having fallen 2.5% Monday. Robusta

prices have risen in recent weeks as producers in Vietnam held back on selling the bean amid

expectations that prices have further to rise. Robusta's supply outlook now looks to be improving,

however, says Sterling Smith, a futures specialist at Citigroup. "Increased sales from Vietnamese

producers are expected over the coming weeks, and this should contain prices," he says.

Uganda Nov Coffee Exports up 13% on Year as Farmers Release Stocks

Nicholas Bariyo

  KAMPALA, Uganda--Coffee exports from Uganda, Africa's largest robusta coffee grower, climbed 13%

on the year in November, as farmers released more stocks to the market to profit from increased farm

gate prices, the state-run Uganda Coffee Development Authority said Tuesday.

  Shipments reached 264,103 60-kilogram bags in November, up from the 233,401 bags exported in the

same month last year, said the UCDA. Farm gate coffee prices in November, the second month of

Uganda's 2013-14 coffee season, rose by an average of 15% compared with October, prompting farmers

to release more stocks to exporters.

  Higher farm gate coffee prices were induced by a rise in international coffee prices after

Vietnamese coffee farmers hoarded coffee stocks for better prices, the UCDA said. The hoarding is

largely blamed for the 34% decline in global coffee exports in November, compared with the previous

month. Vietnam is the world's largest robusta grower.

  Robusta accounts for more than 80% of Uganda's total coffee exports. Uganda exports nearly all its

coffee output in bean form. Last month, the UCDA said Uganda's 2013-14 coffee exports are projected

to drop by at least 3% on the year to 3.5 million bags due to drought. Coffee is Uganda's second

biggest foreign revenue earner after tourism.