Thursday, February 20, 2014

CFD Trading: Coffee

Coffee is a commodity and is under the section commodity on the trading platforms.

Coffee is produced in developing countries as Brazil and Africa.

Weather and coffee
The weather has effect on the outcome of the coffee production; in Brazil is the weather dry and hot.

January 2014
Brazil is hit by a drought and is on its way into the dry season; which has an effect the coffee production and the price of coffee.

In February 2014 has the price of coffee raised from 140 to 174 dollars per contract. The 20 of February is the price decreased from 174 to 163.
Price of coffee
The prices of coffee raised from 108 to 287 from 2009 to May 2011; the price has since decreased from 287 to 163.
Please note
This post is only an illustration of how the weather has an effect on the coffee prices. Please note also my disclaimer.