Market Data Trader

• only US areas that produce a significant amount are Puerto Rico and Hawaii
• a plant produces its first full crop at about 5 years of age and will be productive for about 15 years
• generally classified in two types: arabica and robusta
• arabica is most widely produced (~70% of production)
• Brazil and Columbia are largest producers
• traded on NYBOT
• robusta grown at lower altitudes
• produces in Indonesia, West Africa, Brazil, and Vietnam
• traded on LIFFE exchange
• Seasonally sensitive
• imports and roasts tend to decline in spring and summer and pick up in fall and winter
• subject to upward spikes in June, July, and August due to possible freeze scares
• Supply:
• Biggest producers: Brazil (46.5 million bags ‘06-‘07, 36%), Vietnam (13%), Columbia (10%)
• Demand:
• US coffee consumption 22.64 million bags in 2006
• extreme low prices in 2000-03 caused problems for producers
• prices likely fell below cost of production
• labors aren’t hired and yields are low

(Source: The Commodity Yearbook (CRB))

Other links on coffee:

• Restructuring Uganda’s coffee industry
• The Political Economy of the World Coffee Trade
• The Coffee Trader
• USDA Foreign Agricultural Service
• International Coffee Organization