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How do You Like Your Coffee?

By:
Colin First
Updated: Aug 27, 2023, 12:07 UTC

Long before the Pepsi’s and Coke’s of the world, more than 300 years ago, to be precise, people found about the leaves of a plant which had a nice taste

How do You Like Your Coffee?

Long before the Pepsi’s and Coke’s of the world, more than 300 years ago, to be precise, people found about the leaves of a plant which had a nice taste and seemed to give them a lot of energy when eaten as such or when they brewed and drunk it. This was from a plant called coffee and then began the love and association of humans with their favourite drink, coffee. The leading country as far as coffee production goes is Brazil which produces almost twice the amount of coffee as done by the next country which is Vietnam. It is no wonder then that Brazilians love their coffee.

The major 2 types of coffee are Arabica and Robusta with Arabica being of the higher grade and it constitutes two thirds of the coffee beans in the world. It has to be cultivated at higher elevations and prone to diseases and that’s why some cultivators prefer to grow Robusta which, though it has higher amount of caffeine and is not as rich in taste as Arabica, can be grown in lower elevations and is better resistant to various diseases. The Arabica type is costlier than the Robusta type but that does not make the coffee price forecast any easier.

Coffee is bought and sold as beans in the commodity markets all around the world and these prices are used by retailers, wholesalers, traders and investors to trade and profit from the prices. This is the reason why coffee price forecast becomes very important considering the huge quantities that it is consumed in. Just like for any other commodity, the price forecast is very lucrative and in places where the commodity markets are not fully developed, there is large scale manipulation of the coffee prices in the markets which affects the general population as it also leads to hoarding and other malpractices.

As the largest producer, Brazil also tops the list of countries that export coffee. It is a high organised industry in Brazil where they also follow a method of cultivation that is different from the rest of the world as they grow the coffee plants in nurseries when the plans are small and once they are big enough, they are moved into farms. This ensures that a much larger percentage of seeds manage to survive the initial period and this is one of the main reasons for their higher production. Their commodity market for coffee is also well organised which makes coffee price forecast an easier proposition in the country.

Health wise, coffee contains caffeine which is a well-known stimulant but the studies on how the beverage actually affects the person has not led to any conclusive results. A large number of studies has not been able to define any specific kind of health benefits due to the consumption of coffee while on the other hand, a similar kind of tests has not been able to establish any bad effects of the same. Like in any beverage or food, any kind of moderate consumption of coffee is not known to affect any person too much and that’s where the consensus seems to be, as far as the health effect of coffee are concerned.

Coffee bean making, production and brewing is a gigantic industry in many parts of the world on whom a large part of the world population depends on, for their coffee. Next time you sip your coffee at Starbucks, think of all the farmers, the retailers, the wholesalers and all the people who do coffee price forecast as each of them have a hand in helping you grab a cup of well brewed, rich, aromatic coffee in the comfort of your table.

About the Author

Colin specializes in developing trading strategies and analyze financial instruments both technically and fundamentally. Colin holds a Bachelor of Engineering From Milwaukee University.

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