The coffee producing countries
First of all, it is important to know that three countries alone are responsible for more than the half of the world’s coffee production. These are Brazil, Vietnam and Colombia. The economic, but also current weather events of these countries should therefore be closely followed when you wish to invest in coffee.
The coffee financial markets
Three financial markets divide the majority of the coffee exchanges. These are the NYBOT or New York Board of Trade, the TGE or Tokyo Grain exchange and the LIFFE or London International Financial Futures and Exchange options. But other secondary markets also trade coffee.
The coffee price
In the past, the coffee price has undergone very strong crises, in particular during the quotas suppression in 1989 which caused a strong overproduction leading therefore to a major drop in prices during 2001.
But after this strong depreciation, the coffee price has revived little by little due to a growth in demand emanating from the European countries and the United States which is increasingly stronger year by year, that is to say a rise of approximately 2% each year.
Of course, we should also remember the 2008 crisis which affected all the assets from which coffee too was not immune. This particular crisis did not last long for coffee, the coffee price rose again in 2009 because of the sudden decrease of production in Brazil.
Why invest and trade in coffee?
Finally, the coffee market remains a very interesting market for investors who wish to diversify their investment portfolio. In fact, the coffee price has experienced a continued rise for 3 years now and many traders are becoming interested in the profit opportunities offered by this relatively still unknown asset.
It is therefore the right time to take position and begin trading coffee online. You can invest in coffee through many brokers which make this asset easily accessible to individual investors via their trading platforms.