Quotation of coffee produced in different markets depending on the type of raw material (Arabica or Robusta). For example, Arabica is listed on the NYBOT (New-York Board of Trade) or the Japanese market TGE (Tokyo Grain Exchange). Robusta traded on NYSE markets (New-York Stock Exchange), LIIFE (London International Financial Futures Exchange) and TGE. However, sales in the Japanese market are insignificant.
Trade coffee, as well as trade in any commodities, is speculation on supply and demand changes. For this it is necessary to take into account various indicators. The main ones are described below:
Imports and exports are the first and very important global indicator.
It is necessary to take into account the special climatic conditions affecting the producing countries. Great upheavals and natural disasters may lead to a rapid and sharp increase in prices.
Global production also makes it possible to foresee the increase or decrease in demand and production.
And finally, the reserves are an indicator enabling to determine on the basis of statistical data on the consumption and expectations of economists, how much coffee should be performed.