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Coffee Futures Trading Basics

Coffee futures are standardized, exchange-traded contracts in which the contract buyer agrees to take delivery, from the seller, a specific quantity of coffee (eg. 10 tonnes) at a predetermined price on a future delivery date.

Coffee Futures Exchanges

You can trade Coffee futures at NYSE Euronext (Euronext), New York Mercantile Exchange (NYMEX) and Tokyo Grain Exchange (TGE).

Euronext Robusta Coffee (No. 409) futures prices are quoted in dollars per metric ton and are traded in lot sizes of 10 tonnes .

NYMEX Coffee futures are traded in units of 37500 pounds (17 metric tons) and contract prices are quoted in dollars per pound.

TGE Arabica Coffee futures prices are quoted in yen per bag and are traded in lot sizes of 50 bags (3450 kilograms).

TGE Robusta Coffee futures are traded in units of 5000 kilograms and contract prices are quoted in yen per kilogram.

Exchange & Product NameSymbolContract SizeInitial Margin
Euronext Robusta Coffee (No. 409) Futures
(Price Quotes)
RC10 tonnes
(Full Contract Spec)
USD 1,600 (approx. 10%)
(Latest Margin Info)
NYMEX Coffee Futures
(Price Quotes)
KT37500 pounds
(Full Contract Spec)
USD 5,400 (approx. 13%)
(Latest Margin Info)
TGE Arabica Coffee Futures
(Price Quotes)
-50 bags
(Full Contract Spec)
JPY 75,000 (approx. 8%)
(Latest Margin Info)
TGE Robusta Coffee Futures
(Price Quotes)
-5000 kilograms
(Full Contract Spec)
JPY 75,000 (approx. 10%)
(Latest Margin Info)

Coffee Futures Trading Basics

Consumers and producers of coffee can manage coffee price risk by purchasing and selling coffee futures. Coffee producers can employ a short hedge to lock in a selling price for the coffee they produce while businesses that require coffee can utilize a long hedge to secure a purchase price for the commodity they need.

Coffee futures are also traded by speculators who assume the price risk that hedgers try to avoid in return for a chance to profit from favorable coffee price movement. Speculators buy coffee futures when they believe that coffee prices will go up. Conversely, they will sell coffee futures when they think that coffee prices will fall.

Learn More About Coffee Futures & Options Trading

How to Start Trading Coffee Futures

To buy or sell coffee futures, you need to open a trading account with a broker that handles futures trades. Most online brokerages out there only deal with stocks and stock options. Only a few such as TD Ameritrade lets you trade futures and futures options as well. TD Ameritrade also provide a virtual trading platform where beginners can try out futures and options trading in real market conditions without using real money.

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