What is the coffee C futures contract?
The Coffee C Futures contract, traded on the Intercontinental Exchange (ICE), is the global benchmark for Arabica coffee prices. It represents the expected price of coffee for future delivery, allowing buyers and sellers to hedge against market fluctuations. Coffee C futures (symbol: KC) are standardized contracts traded on the Intercontinental Exchange (ICE) Futures U. S. These contracts represent 37,500 pounds of exchange-grade Arabica coffee beans, with physical delivery possible to various ports in the U. S. Europe.Coffee consumption patterns will continue to vary, influenced by changing demographics and consumer preferences. Sustainable coffee practices are gaining importance, with an increased focus on fair trade certifications, organic farming, and responsible sourcing.coffee futures prices are primarily influenced by weather conditions, consumer demand, economic reports, and market dynamics, including insights from the commitment of traders report. Understanding these factors can help investors make informed decisions in the coffee market.Coffee futures contract trades in 5/100 cent per pound price increments. As each contract is equal to 37,500 pounds of coffee, a $0. If Coffee prices were to move up or down 1.
What is causing the price of coffee to go up?
Prices for coffee have soared, fueled largely by volatile weather that’s reduced crop harvests among major growers like Brazil and Vietnam, according to analysts. Due to the effects of climate change, the land suitable for coffee farming could shrink by 50% by 2050, according to a 2014 study. The analysis found that highly productive areas in the two largest coffee-producing countries in the world, Brazil and Vietnam, may become unsuitable for coffee in the future.Situated in South America, Brazil is the top producer of coffee. They produce 2,68 million metric tons of coffee on average every year. Brazil has also held onto its first-place position as the world’s largest coffee producer for over 150 years.
Why did coffee futures go up?
Major factors include a lingering drought in Brazil, poor crop conditions in Vietnam, persistent global supply deficits, strong demand, and currency fluctuations. Weather uncertainties for Brazil’s 2025–26 harvest have also impacted coffee commodity trading. Prices for coffee have soared, fueled largely by volatile weather that’s reduced crop harvests among major growers like Brazil and Vietnam, according to analysts.In 2024, world coffee prices increased 38. In Vietnam, for instance, which grows most of the world’s Robusta beans, drought caused a 20% drop in coffee production in 2023 and 2024, with exports falling by 10% for two years in a row.
Why is the price of coffee falling?
Coffee Prices Drop as Supply Recovers After Climate Setbacks. After facing low harvests and high prices in the spring of 2025, coffee prices are dramatically decreasing. This shortage has impacted farmers, traders, and coffee lovers worldwide. Moreover, this shortage has also raised other concerns such as coffee prices. In 2024, global coffee prices surged by 147%, with premium Arabica beans reaching USD 3. USD 5,200 per metric ton.Coffee is expected to trade at 400. USd/Lbs by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 439.In April 2025, the U. S. These tariffs have increased the cost of coffee at the point of entry into the U. S.Coffee prices are continuing to fall according to Intercontinental Exchange (ICE), with the price registered on 17 June 2025 the lowest recorded in almost five months.Price Forecasts and Market Outlook Looking further ahead, the bank expects prices to normalise to $2. Trading Economics projected that coffee prices will reach $3. Q1 2025 and rise further to $3. January 2026.
Is coffee a good investment now?
The demand for coffee is expected to continue to grow, making it an attractive investment for those looking for long-term growth opportunities. Coffee is fresh produce, and its enemies are oxygen, light, heat, and moisture.Coffee is not the second most important commercial product in the world after petroleum, but it is the second most important commercial product that is exported by developing countries.Coffee is a major cash crop for Uganda both in terms of foreign exchange earnings and employment creation.
What is happening in the coffee market?
Demand for coffee continues to grow globally, putting additional pressure on limited supplies: Emerging markets like China have seen coffee consumption more than double in the past decade, driven by interest in premium and specialty products. For most investors, commodities like coffee work best as a small part of a diversified portfolio, rather than a primary investment strategy. But if you’re fascinated by the global coffee market, its price swings, and the economics behind it, it’s definitely a space worth watching.
Will the price of coffee go up in 2025?
Coffee prices have surged to levels not seen in years. In fact, Arabica coffee futures, which largely dictate global green coffee prices, rose over 70% in 2024, peaking above $4. Coffee is expected to trade at 400. USd/Lbs by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 439.