About Coffee
The ICE Coffee 'C' contract is the global benchmark for arabica beans. Brazil, Colombia and Central America lead arabica output, while Vietnam leads robusta, which trades in London.
What moves the coffee price
- Weather in Brazil, especially frost and drought risk.
- Certified stocks held in exchange warehouses.
- Currency moves, mainly the Brazilian real.
- Global consumption trends and freight costs.
Arabica and robusta
Arabica, grown at altitude mainly in Brazil, Colombia and Central America, is smoother and dearer; robusta, grown mainly in Vietnam, Brazil and Indonesia, is hardier and used in instant coffee and blends. The two markets usually move together but can diverge when a weather problem hits one origin. Certified stocks held in ICE warehouses are watched as a gauge of readily available supply.
Weather and the Brazilian calendar
Brazil's harvest runs from about May to September, and the southern-hemisphere winter (June to August) brings frost risk for arabica trees. Flowering after the spring rains in September and October sets up the next crop. Brazilian arabica also has a tendency towards alternating larger and smaller crop years. The real's exchange rate matters too: a weaker real encourages Brazilian farmers to sell.
Contract specifications
| Benchmark future | ICE Coffee 'C' (KC), arabica |
|---|---|
| Contract size | 37,500 pounds |
| Minimum tick | 0.05 cent per pound = $18.75 per contract |
| Contract months | March, May, July, September, December |
| Settlement | Physical delivery of exchange-graded washed arabica |
| Related contract | ICE London Robusta (RC), 10 tonnes, US dollars per tonne |
Specifications as published by the exchange; they can change, so confirm on the exchange website before trading.
Trading hours
ICE Coffee 'C' trades Monday to Friday, about 4:15 am to 1:30 pm US Eastern Time.
Contract basics
ICE Coffee 'C' covers 37,500 pounds of arabica, quoted in cents per pound. Robusta trades on ICE Futures Europe in tonnes.
Quote unit
US cents per pound. Hours and specifications can change; always confirm on the exchange's website, especially around holidays.
Coffee FAQ
What moves the price of coffee?
Weather in Brazil, especially frost and drought risk. Certified stocks held in exchange warehouses. Currency moves, mainly the Brazilian real. Global consumption trends and freight costs.
When does coffee trade?
ICE Coffee 'C' trades Monday to Friday, about 4:15 am to 1:30 pm US Eastern Time.
What is the standard coffee contract?
ICE Coffee 'C' covers 37,500 pounds of arabica, quoted in cents per pound. Robusta trades on ICE Futures Europe in tonnes.
Why is coffee so volatile?
Supply is concentrated in a few countries, trees take years to replace after damage, and weather events such as frost or drought can cut output suddenly.
What is the 'C' contract?
ICE's benchmark arabica coffee futures contract, quoted in US cents per pound.