Coffee

COFFEE INVESTING


Invest in coffee | coffee Trading via CFD

Coffee is a part of the agricultural commodity, and it is the second most popular commodity instrument after crude oil in the world. It is one of the most popular drinks in the world. Brazil is the largest producer of coffee in the world. It produces around 40% of the total coffee in the world. There is a huge demand for coffee in the international market. 3.4 billion cups of coffee are being consumed daily in the world. In historic times coffee used to be a royal drink, and it was only consumed by kings and sultans later coffee started to gain popularity among the western countries

 

Coffee is used primarily for its metabolic effects. It acts against a chemical molecule called adenosine, which is responsible for the feeling of fatigue. It also helps your brain to release adrenaline into your bloodstream, which makes you feel more alert and excited.

Coffee contract specifications:

Coffee trading hours: 09:15 to 18:29 GMT

Minimum trade size: 10

Contract size: 100lbs

Ticker symbols: COFFEE_C

Price Quote: cents per lbs.

Ticker size: $0.0005 per pound

 

What can influence coffee prices?

The best quality coffee beans are Arabica, which are generally grown in the south and Central America; because of their premium quality, they demand a higher price for their cultivation. Brazil produces cheaper coffee beans such as Robusta, which has a significant demand in the international market, and it is 70% cheaper than Arabica beans. Brazil produces around 2.7 million metric tons annually. Vietnam is one of the leading competitors of Brazil in the production of coffee. It produces around 1.65 million metric tons on an annual basis.

 

Weather and climate play an important role in the production of coffee berries after that different producer and roasting process are used to add a distinctive taste to the coffee. Bad weather and climate can affect the production of the plant due to which prices of coffee can rise drastically. The procedure used for roasting the beans can also influence the price

 

Sources of Coffee are limited to few countries due to is requirements of adequate climate conditions and financial resources, and these conditions are unlikely to change anytime soon, so traders around the world use this opportunity to hedge their risk on the supply scarcity of coffee.

 

Most of traders portfolio consists of assets, bonds but many traders and investors use coffee as a way to further diversify their portfolio.

However, there are also some risks associated with trading in coffee like-

  1. Global climate change
  2. Strong US dollar
  3. Overproduction
  4. Economics weakness

 

How to trade coffee?

Open a trading account at Capital Street

Put funds in the account to have a sufficient amount.

Choose the position size.

Take Buy or Sell position according to your analysis.

 

Why trade Coffee CFD with CAPITAL STREET

  • The fully regulated and customer-centric platform which offers a wide range of services and features.
  • CSFX offers you our stat of the art platforms and range of trading tools
  • Leveraged trading with no hidden charges.
  • Automate your trade facilities and direct access to the market
  • Safety of funds