This is the 2nd most commonly traded commodity after Crude Oil. There are two types of Coffee grades; Robusta and Arabica Coffee trades on the Intercontinental exchange which is the main futures market for coffee (Arabica).
4 companies Sara Lee, Kraft, P+G and Nestle buy 50% of all the coffee.
What affects the price of coffee?
- Weather is the big one - coffee grows on small trees - the biggest problem is a frost or a freeze which will lead to poorer yields and could potentially drive up the price. - 65% of global coffee is produced by 5 countries - Brazil (by far the biggest producer at 30%), Vietnam, Colombia, Indonesia and Ethopia - Demand from Europe, USA, China and South America - How do we trade Coffee? Futures, Options, CFDs, ETFs
