Coffee Futures And Turtle Trading
I like to take my coffee early in the morning. The first thing I do in the morning is make coffee for myself. Otherwise, my day does not start. How about you? Most probably, you are like me too. We are all alike. We all love to drink coffee. Precisely just because we love coffee too much, coffee is an important global commodity after crude oil. I mean after crude oil, coffee is the second largest traded commodity in the world.
Just like other commodities, coffee production is dominated by a few countries led by Brazil, Columbia and Vietnam. Now, if you want to know more you can visit the website of International Coffee Organization and The National Coffee Association of USA. How about making money from coffee futures while drinking your cup of coffee? Hey, it's not a bad idea!
The coffee futures market is basically used by the coffee producers and purchasers for hedging from wild price swings. In addition to hedging, the coffee futures market provides small investors to profit from fluctuations in the coffee prices. The most liquid coffee futures contracts are provided on the New York Board of Trade (NYBOT).
NYBOT is one the premier locations for the trade of agricultural commodities. Don't know NYBOT? Watch the movie, "Trading Places" starring Eddie Murphy and Dan Aykroyd. It was shot at NYBOT. NYBOT coffee futures is one of the oldest futures contracts in the market.
The contract ticker symbol is KC and its size is 37,500 pounds with price fluctuation of .0005/pound. Trading months are March, May, July, September and December. Because of seasonality, cyclicality and geopolitical factors, coffee can be highly volatile commodity and can experience extreme price swings. These price swings are what futures traders bet on. Now before trading coffee futures do a good research on the coffee market inside out.
Now when you buy coffee, you want the right flavor. Similarly, knowing the different type of coffees available for investment is important. Now, the global coffee production is made up of two types of beans:
There are two types of coffee beans that are traded in the coffee market. The first one is the Arabica Coffee. This is the most popular and the most widely grown coffee in the world. It gets grown in Brazil and Indonesia as well as other countries. But these two countries are the largest producers of this variety. More than 60% of the global production is Arabica Coffee. It is expensive than the other variety of coffee that is the Robusta. Robusta is easier to grow as compared to Arabica. It is less expensive than Arabica.
By the way the coffee futures contract traded on NYBOT are based on pure Arabica Coffee. Now coffee is a serious business and you can profit from the coffee craze like the Starbucks that has taken hold of the United States and is spreading rapidly in Europe and part of the developing world like China and India.
Mr. Ahmad Hassam has done Masters from Harvard. Know this Fibonacci Retracement Secret method that pulls 500+ pips per trade. Read the story of Richard Samuels, a post office mailman with a head injury and how he made a fortune with these Neutrino Forex Signals.






Recent Comments