Investing and trading in coffee

Among the numerous agricultural food products now available to trade online, coffee remains a very interesting asset. Indeed, it represents the largest international exchange volume with a distribution of 30% Robusta and 70% Arabica. Before starting to trade coffee online, here are some important concepts that you should know in order to invest correctly.

Invest now in coffee
Investing and trading in coffee
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

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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.

Coffee: A profitable asset for trading!

Coffee is an important agricultural product used throughout the world so it benefits from extremely high demand which in turn creates major movements in its price. It is therefore judicious to take position on this commodity using CFDs to maximise your profits.

Invest now in coffee*
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.