Coffee Exchange and World Price
How coffee prices are determined
The C-Price
The C-Price (C-Market) on the New York ICE exchange determines the world market price for Arabica green coffee. It's quoted in US cents per pound and fluctuates widely - from under $1 to over $3 per pound.
Why the C-Price Is Problematic
The C-Price doesn't reflect production costs. In many growing countries, costs are $1.50-2.00 per pound. When the C-Price falls below that, farmers operate at a loss.
Specialty Coffee and Pricing
Specialty coffee trades above the C-Price. Premiums (differentials) of 50 cents to several dollars per pound are common. Top lots at auctions fetch multiples of the C-Price.
What Influences the Price?
- Weather: Frost in Brazil can double the price
- Harvest forecasts: Good/bad harvests affect supply
- Speculation: Financial investors trade coffee futures
- Exchange rates: Especially the Brazilian Real