SOFTS OVERVIEW

Coffee | Cocoa | Cotton | Sugar | Orange Juice | Lumber

Coffee Overview Contracts | Quote-board | Chart

Coffee Economics: Coffee’s beginnings are lost in antiquity, but it is believed to have originated in the Ethiopian province of Kaffa around 3 A.D., where ground beans were used to season food. In about 1300 A.D. the southern Arabians first roasted and brewed coffee for use as a beverage. Today, coffee is one of the world’s most popular drinks and is among the most important internationally traded commodities, with a number of economies largely dependent on its trade.

Coffee trees, or bushes, grow primarily in subtropical climates. Coffee beans are the seeds of cherry-sized berries, the fruit of the coffee tree. Coffee is primarily classified into two types – arabica and robusta. Arabica coffees, which make up the bulk of world production, are grown mainly in the tropical highlands of the Western Hemisphere. Robusta coffees are produced largely in the low, hot areas of Africa and Asia. Their flavors are less mild than the arabica coffees. South and Central America produce the majority of coffee traded in world commerce. Brazil and Colombia are the largest growers of arabica coffee in the world.

The supply of coffee is affected by weather conditions, the health of the coffee trees and harvesting practices. Historically, weather has played a major role in determining world supply.

Coffee beans are shipped and warehoused in natural fiber bags, and coffee sales are usually accomplished through the use of inspected samples offered by importers and brokers.

The internal policies of the governments of producing countries with regard to number of trees planted, price support programs and world export quotas have also impacted the amount of coffee available for world trade

To learn more, contact USIG today: 1- 800-974-8744

Back to top