Coffee Trading

Coffee trading at CM Trading

 

Trade Coffee


Although many had yet to discover coffee trading's massive potential, this commodity remains steady in almost any market condition. We believe that in order to maintain a well balanced portfolio, a trader needs to combine a wide variety of currencies and commodities. That way you don't put all your eggs in one basket.

A few interesting facts about the Coffee market

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

Don’t miss the opportunities of Coffee trading with the South African licensed and award-winning Forex broker.

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What influences the prices in coffee commodity trading?

  • The South American Arabica beans are generally considered higher quality, commanding a higher price. This does leave the Arabica exporting countries open to competition from those companies producing the cheaper Robusta bean, however, creating an interesting coffee trading climate.
  • Coffee commodity trading is also being heavily influenced by the rise of the ‘fair trade’ bean. Growers are offered a guaranteed set price before harvest. This has created an environment with more privately negotiate deals with co-ops worldwide.
  • Coffee is being studied medically, too, as influencers in fields such as Alzheimer’s, liver cirrhosis, gout and more. This could mean, in the event of breakthroughs, an interesting spanner in the coffee commodity trading market.
  • Coffee is the key cash crop in many countries, with some of the world’s poorest depending on coffee for their income. This does lead to cyclic pricing, due to the whims of nature and the impact on the farmers. Coffee trade is also highly seasonal.

 

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What are the advantages of coffee trading?

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

As you can see, coffee trading is an unusual yet interesting commodity that holds great opportunities for both beginners and experienced traders.
It's important to remember that a diverse portfolio is the smart option for any trader.

Join us at CMTrading and trade on coffee CFDs. Enjoy the best CFD trading experience with an industry leader!

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HIGH RISK WARNING:
Trading Foreign Exchange (Forex) and Contracts for Differences (CFD’s) is highly speculative, carries a high level of risk and may not be suitable for all investors. You may sustain a loss of some or all of your invested capital, therefore, you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with trading on margin.

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