How I trade the Coffee market right now and why

Member Report - Extremes in the market lead to a big mean-reversion opportunity

Hello subscribers,

this week’s Member Report is about a trading opportunity in the Softs market. I will evaluate the current coffee setup and support you with my views on the market.

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Quick facts about the coffee market

Arabica coffee is the world benchmark for coffee futures contracts that trade on the Inter Continental Exchange (ICE). Arabica accounts for 75% of the world’s production and is mostly cultivated in Brazil (40% of the world’s total supply) and Colombia.

Robusta accounts for the remaining 25% and is mostly produced in Vietnam (15% of global supply) and Indonesia.

Robusta is the coffee bean that is popular in Europe and espresso coffees while Arabica beans are popular in the United States.

The product we can easily trade and this report is about - is Arabica coffee.