What is the coffee commodity market?

The coffee commodity market, also known as the C Market, is where the global price of coffee is determined every single day by traders at the New York Stock Exchange. Most of the time, when we’re brewing our morning cup of coffee or waiting impatiently in line at Starbucks, we never really stop to think about what coffee is worth.

How much is a pound of coffee on the C market?

However, although the value of any given pound of coffee on the C Market is always exactly the same as all of the other pounds of coffee on the C Market, this overall price varies from day to day. For example, on January 31, 2019, the price of one pound of coffee on the C Market was $1.06. The next day, the price had dropped to $1.04.

Why is coffee priced in US dollars?

Commodities, including coffee, are priced in US dollars. Sellers of coffee receive fewer dollars for their product when the US currency is strong and more dollars when the currency is weak. A strong US dollar can potentially depress coffee prices, while a weak US dollar is usually good for prices. Where Can You Trade Coffee?

What is the economic impact of coffee?

In the United States alone the economic impact of coffee exceeds $225 billion and accounts for more than 1.6% of the country’s GDP. What Drives the Price of Coffee? If you want to jump ahead and find out how to trade coffee, see this Coffee Trading Guide.