The coffee plants are the source of one of the most popular beverages in the world.
Coffee has played an important role in social contexts around the world: from the cafes of the sixteenth century than today, the coffee continues to be widely consumed.
The varieties Arabica and Robusta are the most commonly used.
Both qualities require certain conditions to grow: a tropical climate, high altitude and plenty of water.
The coffee is produced in almost all tropical regions of the world, including parts of Latin America, such as Brazil and Colombia, and regions of Asia and Africa. The production of coffee is extremely important to the economies of many of these countries and is a key component of export income. Fluctuations in the price of coffee can have a major impact on the producing nations.
THE MARKET OF COFFEE
The retail market for coffee is displaced with respect to the commodity market: the price you pay for your cup of coffee is not closely related to the cost of the beans harvested for its production. When coffee prices decrease, the quality of the coffee harvest may also decline. The beans can be harvested unripe to ripe ones together to increase the amount produced. Also, if the prices are low, the most valuable quality Arabica could be grown less extensively because of higher production costs, so the coffee blends may contain a greater proportion of Robusta beans.
The coffee is traded on the New York Board of Trade (NYBOT) since 1882, when he was born to restore order in a very volatile market. The NYBOT provides not only marketing systems of this commodity, but also the possibility of comparing the quality of the contracts on coffee Arabica blend with coffee contracts “C”.
The coffee is historically one of the most commodities subject to volatility.
The factors that affect the price of coffee are:
- Political Factors