"Cheap" Coffee
p. 52 · Read in the full issue
Demand for Robusta "Cheap" Coffee Goes Dear
From a Special Correspondent LONDON, April 1! rpHE December decision of J. Uganda Coffee Industry Boc to withhold stocks of a gf crop of robusta has not only stopt a decline in prices on the Lorn market but has actually cau buyers during the last three mon to pay 67/- more per cwt.
Uganda robusta variety is basis of most British blends and December, 1958, the Board, aw, of the good crop on hand and f: ing prices offering in London, about creating an artificial short: of “cheap” coffee. Since Janu and up to the beginning of Ab prices have risen from 200 s. 3d. S per cwt to 2675. Stg.
Dealers suffered heavy losses the London Terminal Market cause they made forward sales; the attractive prices ruling in es December, assuming that pr would continue to drop.
They have had to cover their co mitments by buying supplies current market prices for imme ate delivery.
The London Terminal Coi Market—reformed on July 1,1: after being in abeyance for 31 ye —may have undergone a pain settling-in period due to miscal lations of dealers in “coffee futui during the first few months operation.
However, the earlier low pr: offering on the Terminal Market tracted a large number of dea. from all over the world who nor ally bought elsewhere than in Li
don. j
There is no indication yet of < early fall in prices, as many dea: are committed well into May.
These dealers caught by buy wanting delivery now are trying cover their commitments as ? as they are able. Brazil, o\s stocked with coffee, may be answer, if the Brazilian Go vermin brings down the prices of lo’ grades to a level competitive w robusta.
Brazil's Coffee "Wrong Kind
Although there is an “awful of coffee” in Brazil it is not robusta type (it’s mainly arabica) could not be substituted complet; Anyway the hard currency alia tion for coffee from South Amen is limited to around £Stg. 3 milli Another aspect of the harden of prices for robusta on the Lono market was the interest of Amerk dealers in the Uganda crop, due the failure of robustas from Ivory Coast to meet their standai Uganda, always a large supplier robusta to the US through Me basa, has met the demand w: alacrity.