What are coffee futures?

Traders call these “coffee futures,” and they serve as a baseline for buyers around the world. A pound of arabica beans in the futures market, usually $1.20 to $1.40, rose above $2 at the end of July, the highest since 2014.

What is a coffee C contract?

The Coffee C contract is the world benchmark for Arabica coffee. The contract prices physical delivery of exchange-grade green beans, from one of 20 countries of origin in a licensed warehouse to one of several ports in the U. S. and Europe, with stated premiums/discounts for ports and growths. 5/100 cent/lb., equivalent to $18.75 per contract.

Is global coffee supply bearish for prices?

Abundant global coffee supplies are bearish for prices. ICE arabica coffee inventories have risen steadily since falling to a 23-year low of 382,695 bags on Nov 3 and posted a 5-1/2 month high last Friday of 814,686 bags.

Are coffee futures a good supplement for intraday traders?

So, the coffee futures could become an interesting supplement for futures traders. However, intraday traders should be extremely careful due to a high volatility of this trading instrument.