Tips for easy Coffee Trading

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Coffee is one of the most widely traded commodities in the markets around the world. Coffee is divided into Arabica and Robusta. The major producers of coffee are from South America, Asia and Africa. The largest consumers and exports of coffee are United States of America and Europe. United States leads the list when it comes to importing of Coffee. There is an increase in consumption of coffee in US when the winter season occurs. This gives a good support for coffee prices increase.

Now a days electronic trading gives a lot of opportunity in coffee trading. One can make good money by trading in coffee commodities. Coffee trading stands second in commodity trading after crude oil. There might be many of products whose price keeps changing depending on various factors, the prices of coffee do not tend to change much as it is the most important daily need in almost everybody’ s daily routine. Most of the individuals are known to start their day with a cup of coffee. There are usually two kinds of coffee which are traded on the world exchanges.

Arabica coffee is the one which is traded in both futures and options. These are traded in the New York Intercontinental exchange which was formally known as the New York board of trade. The size of coffee futures trade is 37,000 pounds and the trades are done electronically. The months, in which the coffee future contract opens in the months of March, May, July, September and December.

The Robusta coffee futures are traded in London on Exchange Euronext.liffe. The size of this contract is 10 metric tons. The prices are quoted in US dollars per metric ton and the minimum price moment shall be of $1 per metric ton.
Seasonal changes play a crucial role in coffee yields and in turn play an important role in changing Coffee prices. Good rainfalls are very much important for this commodity. If observed, coffee beans are usually grown in regions between the Tropic of cancer and the Tropic of Capricorn.
Climate is very much essential for good yield in coffee beans.

If you are looking to trade in coffee futures, you need to know the fundamentals of coffee. You also need to have good information about the producers and the consumers of coffee. You also need to know the climatic changes which occur in those countries or regions which produce coffee.
Many of them would be undoubtedly excited about trading coffee and that too if they are new to coffee trading. Before you get a good experience in trading, it is always good to take the help of a good and genuine broker who can help you with some good trades.

The Arabica futures can be traded on ICE futures Of United states. You can also trade in the Robusta futures through this exchange. These are the two futures which can be traded on exchanges from around the world. Coffee C is the options which can also be traded on exchange, ICE of United states.