Coffee TRADING

The coffee trade operates through buying and selling contracts for coffee beans, which are used by traders to speculate on the market’s high price volatility.

Buyers, such as coffee roasters or distributors, enter into contracts to purchase coffee beans at a future date and predetermined price. Sellers, typically coffee producers or exporters, enter into contracts to sell their coffee beans at a specified quantity and price.

These contracts allow participants to hedge against price fluctuations and manage risk. Speculators, including investors or traders, engage in the coffee trade to profit from price movements by buying and selling contracts without the intention of physical delivery. The coffee trade relies on these contracts to facilitate transactions and enable market participants to navigate the dynamic coffee market.