Trading Coffee Index
There’s probably one beverage that we can find in every home. We see it served upon waking up in the morning, or we help ourselves to a fresh cup at night to keep as up. And everything in between, from conversations with friends, to a romantic date, is shared over a mug of this tasty drink. Dark-colored with a strong delicious flavor, slightly acidic with a pH bordering on 5.0 to 5.1, coffee has helped brighten an otherwise dull moment and helped calm erratic nerves.
While tracing its roots may have been lost since the ancient times, coffee has been thought to originate in Ethiopia around 3 A.D. Nowdays, major orders for unwashed Arabian coffee are coming from this area. The Southern Arabians started brewing coffee in about 1,300 A.D., with recent time shaving seen a peak in order for washed Arabian coffee from this side of the world. Trading routes involving Asia and Africa helped spread the commerce of Coffee to European consumers.
Taking a Look into the Coffee Markets
Its aromatic scent emanates from the roasted seeds of Coffee, cultivated in over 70 countries worldwide, primarily in Latin America, South Asia and Africa. Here are the top producers of Coffee for the year 2010-2011:
•Brazil (produces approximately 39% of the world total)
•Vietnam (produces approx. 13% of the world total)
If you are eyeing a good investment in binary options, trading with coffee is a good venue to practice your business strategies. High returns are expected for exchanges involving coffee, maximizing your profits along the way. There are important factors that need to be considered regarding the price of coffee:
•coffee is heavily traded, the second most traded with oil in the forefront
•it is generally traded in financial instruments known as futures contracts, mainly done through the New York Board of Trade
•disease is also a culprit in fluctuations of coffee prices
•shipping delays also cause major price changes in certain regions
•weather (floods, droughts and freeze damage) accounts for the volume of production of coffee
How to Trade with Coffee
Betting on coffee in binary options is a wise strategy this season. It has been speculated that the Brazilian harvest is affected by the recent dry weather. Thereby producing only an estimated over 50 million kilograms of coffee production, short of the predicted produce of 60 million kilograms. However, this has pushed producers to limit their supply to increase the market price of coffee, which are likely to happen, as experts say. It is a good time to invest in coffee because of this.
Open an account with a reliable trading platform. There are some who offer setting up a demo account, where beginners can try investing in options projected in real marker conditions without involving real money. There are two options that a financier can choose from- CALL and PUT. A CALL option is chosen by traders who believe that coffee prices will increase. Those thinking of a decrease may choose the PUT option instead.
•The trading hours for Coffee is Monday to Friday 12:00 to 18:00 GMT / Mon – Fri 07:00 to 13:00 EST