
Daily Coffee Report 8/12/26
Daily coffee report

- Coffee
By: CommodityNetwork Team - USA, CommodityNetwork USA
CoffeeNetwork (New York) – The latest USDA attache report notes Uganda’s MY 2023/24 coffee production will reach a record high of 6.85 million bags. This is largely due to good yields from favorable weather and the maturation of high-yield seedling varieties planted in previous years. To help increase production, Uganda’s government has provided farmers with high-quality seedling varieties and extension services since 2017. Although this support has reportedly declined since 2020, in part due to Covid-19 related restrictions and limited resources, many high-yielding Robusta trees planted before 2020 have begun to mature. Robusta trees in Uganda typically take three to four years to achieve peak yields after planting. MY 2023/24 Arabica production is expected to remain steady at 1 million bags as growing conditions similar to those encountered in MY 2022/23 are expected to prevail.
Post estimates Uganda’s MY 2023/24 area planted will increase slightly from 565,000 to 570,000 hectares, as some farming cooperatives and millers have begun to provide support for new coffee acreage, albeit at a smaller scale than the government’s pre-COVID efforts. Prior to 2020, Uganda’s area planted increased dramatically as non-traditional areas began to grow Robusta with government support. Post estimates acreage dedicated to coffee increased from 450,000 hectares in MY 2016/17 to 560,000 hectares in MY 2019/20.
Changes to MY 2022/23 Post estimates
MY 2022/23 production increased 9 percent year-on-year to almost 6.6 million bags as Robusta production recovered from drought conditions in lowland growing areas during MY 2021/22.
MY 2022/23 Robusta yields are expected to remain below historical levels due to outbreaks of Black Coffee Twig Borer (BCTB) and Coffee Red Blister Disease observed in Uganda’s central growing regions. MY 2022/23 Arabica production is estimated to remain unchanged from MY 2021/22 as similar growing conditions prevailed in Uganda’s highland regions. Post estimates area harvested increased marginally from 550,000 to 555,000 hectares as Government-backed efforts to increase acreage slowed.
Domestic consumption: Post anticipates MY 2023/24 consumption will increase from 300,000 to 325,000 bags as more urban consumers embrace coffee drinking as a social activity. Local sources indicate that coffee cafés have proliferated in Kampala and other cities. Additionally, millers have begun offering coffee in small packaging sizes that are convenient and affordable for domestic buyers to meet rising demand.
Post estimates MY 2022/23 consumption will increase from 125,000 to 300,000 bags following the removal of Covid-19-related restrictions. In MY 2021/22, Uganda maintained several Covid-19 prevention measures including a national curfew and the world’s longest Covid-related school closure. With the removal of these restrictions in 2022, Post estimates Uganda’s consumption will return to historical levels.
Trade: MY 2023/24 exports are estimated to increase 4 percent to 6.52 million bags due to increased domestic production. According to the Uganda Coffee Development Authority (UCDA), Uganda’s top export destinations include Italy, Sudan, Germany, India, the United States, and Morocco. In March 2023, the government of Uganda acquired a South Korean quality control export thorough an agreement with the Korean Institute for Advancement of Technology to help Uganda exports meet South Korean import requirements. This collaboration may facilitate future exports to the lucrative South Korean market.
Post revises its previous MY 2022/23 export estimate of 6.51 million bags down to 6.25 million bags as outbreaks of BCTB and Coffee Red Blister Disease are expected to reduce exportable Robusta supplies.
Stocks: MY 2023/24 ending stocks are estimated at 479,000 bags. Stocks are held largely by exporters with farmers holding small stocks or none at all.
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Daily coffee report


August 12 – Today’s focus is on inflation, with the July consumer price index data out this morning. We have this, and one more month of data, ahead of the next Federal Reserve meeting. Of course, headlines from the Middle East and the Black Sea wars also have an ongoing influence on the markets. Stock futures posted gains this morning, while the VIX traded just below 15. The dollar index traded near 99.7. Yields on 10-year Treasuries are trading near 4.66%, while yields on 2-year Treasuries are trading near 4.18%. WTI crude oil is trading near $83, while Brent trades near $88 per barrel. The grain and oilseed markets rebounded from yesterday’s losses ahead of today’s highly anticipated WASDE crop report that is due out at Noon Eastern Time.


Daily coffee report

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