The price of boutique coffee beans is a little cheap and expensive. Why is there a big price gap?

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From a political point of view, the price of goods in the market is inseparable from this law: in short, it is the relationship between supply and demand. When supply exceeds demand, the price goes down, on the contrary, the price rises naturally. There is also a saying that things are scarce, that is, when the quantity is extremely scarce, the price will be high.

If only it could be as simple as supply and demand. There are many reasons that affect the price of coffee, at least in all aspects. In 2011, the price of coffee futures exceeded 300 cents / pound, and in the first half of 2020, it hit a bottom of nearly 85 cents / lb. this is like a roller coaster price trend is really elusive. Excluding changes in supply and demand, weather, exchange rate, politics, war, Sino-US relations, and even one of Trump's tweets may affect the price of coffee.

Coffee yield

According to market analysis, every big change in futures prices is due to production in the country of origin of coffee, such as rust in Central and South America, drought in Africa, or a bumper harvest in Brazil.

Futures speculation

What is coffee futures? What factors affect the price of coffee futures?

Like other futures commodities, coffee has its own trading codes, contract values and margin requirements.

Coffee futures belong to commodity futures, and the trading volume is very high in the world. At present, there is no coffee futures in China, the main coffee futures market is the United States, also known as American coffee, trading code NYKCO, is the United States NYBOT Exchange (New York Futures Exchange) launched type C coffee futures.

Coffee futures, like other commodities, are mainly affected by market supply and demand. Like tea in China, coffee is one of the main drinks in the world. It is refreshing and very popular. Therefore, the price of coffee futures is very affected by market supply and demand, and it is also very speculative. The main influencing factors are climate, harvest and so on, because the demand for coffee does not change much.

It is precisely because of the great turmoil in the coffee futures market that more and more speculators are attracted to take advantage of it. Most of this money flows into the coffee futures market in the form of speculative funds, but in fact, buyers do not have the demand to purchase actual coffee items, but use the price difference as income. Futures speculation on the one hand improves the market liquidity, but also causes market chaos.

Generally speaking, coffee is the second largest trading volume commodity in the world after crude oil, which belongs to general commodities, commodities and agricultural products. As a general commodity, it means that coffee has the attribute of commodity, and its price is affected by supply and demand factors and cost factors. As a commodity, it means that coffee has a financial attribute, and its price is affected by dollar factors and geopolitical factors. As an agricultural product, it means that when analyzing the price of coffee, the relationship between its growth and climate should not be ignored.

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