What are coffee futures?
Coffee C ® Futures 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. Europe, with stated premiums/discounts for ports and growths. Arabica. Arabica is the most popular type of coffee on the planet — estimates put global production at around 60% of total coffee output. Arabica beans are large and oval-shaped. They’re mainly grown across Latin America, especially in Brazil, thriving in high altitudes 500-2,500 above sea level.Our coffee, our why Starbucks proudly sources 100% arabica coffee from more than 450,000 farmers in 30 markets along “The Coffee Belt” – in Latin America, Asia Pacific and Africa.
Why are coffee futures high?
Fundamentally, coffee prices have been increasing due to a combination of reduced supplies from weather problems in major producing countries like Brazil and Vietnam, tariffs on coffee imports, and better global demand. After facing low harvests and high prices in the spring of 2025, coffee prices are dramatically decreasing. As a result, ripples are being seen throughout the global supply chain following a period of unpredictable crop yields and unstable consumer prices.But by 2050, rising temperatures could shrink the global area suitable for growing coffee by half. And at least 60 percent of all coffee species — including arabica, the most popular bean — are at risk of going extinct in the wild due to climate change, deforestation and disease.
How are coffee futures sold?
Coffee futures are traded on various exchanges such as the singapore commodity exchange which primarily deals with the robusta coffee while brazil’s commodities and futures exchange (bm&f) deals with arabica and the tokyo grain exchange offers both arabica and robusta. As soft commodities, coffee futures can experience significant price fluctuations, making traders vulnerable to volatility. Geopolitical factors, such as changes in production policies or trade agreements in coffee-producing regions, can also impact coffee futures prices.
Is coffee going up in 2025?
In April 2025, the U. S. These tariffs have increased the cost of coffee at the point of entry into the U. S. Overall, while there are risks involved, the ongoing demand and market growth provide a compelling case for coffee as a worthwhile addition to investment portfolios in 2025.In April 2025, the U. S. These tariffs have increased the cost of coffee at the point of entry into the U. S.
What time does coffee futures open?
Coffee Futures Contract ICE Futures U. S. Sunday – Friday 3:15 a. Chicago/Central Time (CT). For instance, Starbucks locks in its coffee prices through futures contracts 12-18 months in advance, according to company filings. Traditionally, coffee companies invest in the futures market to lock in prices for coffee they will purchase in the future, mitigating the risk of sudden price increases.The futures market plays a crucial role in determining coffee prices. Futures contracts allow producers, exporters, and traders to hedge against price volatility by locking in prices for future delivery. This can provide some stability in a market that is otherwise highly unpredictable.
Is coffee a good investment now?
Supply chain issues have coffee price increasing significantly. If this is temporary, it may present buying opportunities after The impact is felt by the chains. If it is permanent, it’s likely to impact earnings for a long time and thus I would stay away from them for now. In April 2025, the U. S. These tariffs have increased the cost of coffee at the point of entry into the U. S.