Coffee Trading

Everything you need to Know about Coffee Trading

Coffee trading remains steady in almost any market condition, although its massive potential is yet to be discovered by many. We believe that a trader needs to combine a wide variety of currencies and commodities in order to maintain a well-balanced portfolio, i.e. not to put all his/her eggs in ne basket.

A few interesting facts about the Coffee market

The coffee market is dominated by supply coming mainly from Brazil, but also from Vietnam, Indonesia and Colombia. In fact, Brazil produces twice as much as its nearest competitor – Vietnam, but the cheaper cost of the Vietnamese beans creates an interesting competition within this market.

What influences the prices in coffee commodity trading?

What are the advantages of coffee trading?

Coffee is a high demand steady market. The rise of the Robusta growing countries have also created an interesting market where the lure of quality vs cost is creating waves. Also, a premium niche market is being created by the increased demand for ethically sourced coffee. All of this makes coffee a commodity that is difficult to predict but also quite lucrative. Where demand is beginning to outstrip easy supply and ‘green’ consumerism is on the rise, counter to previous economic indicators, people are willing to pay premium costs for goods. In conclusion, traders can increase their profits with the right strategies while coffee trading is in an interesting state of flux.

Apparently, coffee training being an unusual but interesting commodity holds great opportunities for both beginners and experienced traders. It's important to remember that the smart option for any trader is a diverse portfolio.