The raw material coffee on the stock exchange
The most consumed drink in the world after water. In terms of value, coffee is the most important raw material after crude oil. Major stock exchanges: NYBOT and LIFFE
Despite the efforts of the various players, there are countless natural factors that cause the price of coffee to fluctuate.
Due to the way it is produced, it is difficult, for example, to compensate for peaks in demand, to cultivate more plants and to harvest the first crop takes years. This causes the price to skyrocket.
One indicator for this game of supply and demand is the total of four stock exchanges where coffee is currently traded.
Of particular importance are the Robusta exchange on the London EURONEXT and the Arabica exchange on the New York Trade Board. Here, in addition to normal coffee trading, futures transactions are concluded for large quantities of coffee beans and the price development of coffee is speculated on.
For many, especially smaller customers such as roasters, the exchange, on which only "standard qualities" are traded, is rather a non-binding price barometer. The coffees of this world are far too diverse. Quality, origin and growing conditions, consideration for the environment and secondary factors such as transport costs and exchange rates can vary greatly.
Those who buy from small businesses and value good coffee often buy coffee at a price agreed directly with the middleman or producer.
In order to prevent artificially induced fluctuations in the coffee price, trade agreements, control bodies, and stock exchanges have been set up. Today, the ICO (hyperlink to http://www.ico.org) (International Coffee Organization), which is responsible for compliance with strict hygiene and environmental guidelines, is in charge.
The ICO mediates and negotiates between 77 coffee import and export countries.