Coffee Spread Betting

Spread Betting
           
Coffee Spread Betting

Coffee Spread Betting

About Coffee Spread Betting

1) Where can I Spread Bet on the Coffee Market?
2) Where can I find Real-time Spread Betting Prices for the Coffee Market?
3) Where can I find Live Charts / Candlestick Charts for the Coffee Market?
4) How do you Spread Bet on the Coffee Market to Go Up?
5) How do you Spread Bet on Commodities markets like Coffee to Go Down?
6) Where can I find more on trading Commodities markets?


1) Where can I Spread Bet on the Coffee Market?

The following table shows were you can spread bet on Coffee.

For more details on trading Commodities markets see Commodities Spread Betting.


Spread Betting - Commodities Softs Markets:

Financial Spreads ETXCapital CMC Markets IG Index Capital Spreads GFT
Coffee Financial Spreads: Coffee Markets? ETXCapital: Coffee Markets? CMC Markets: Coffee Markets? IG Index: Coffee Markets? Capital Spreads: Coffee Markets? GFT: Coffee Markets?
Sugar Financial Spreads: Sugar Markets? ETXCapital: Sugar Markets? CMC Markets: Sugar Markets? IG Index: Sugar Markets? Capital Spreads: Sugar Markets? GFT: Sugar Markets?
Wheat Financial Spreads: Wheat Markets? ETXCapital: Wheat Markets? CMC Markets: Wheat Markets? IG Index: Wheat Markets? Capital Spreads: Wheat Markets? GFT: Wheat Markets?
Other Softs? Financial Spreads: Other Softs Markets? ETXCapital: Other Softs Markets? CMC Markets: Other Softs Markets? IG Index: Other Softs Markets? Capital Spreads: Other Softs Markets? GFT: Other Softs Markets?
Softs spread betting markets may also be available through other companies. Notes.


2)Where can I find Live Spread Betting Prices for the Coffee Market?

For Commodities spread bets please see the above tables. Where a company offers the relevant market they will also provide clients with live prices on that market.


3) Where can I find Live Charts / Candlestick Charts for the Coffee Market?

Spread betting companies often offer a variety of free data to their clients (accounts are subject to status, terms and conditions).

The most popular Commodities data, apart from live prices, tends to be the candlestick charts. The time period of the charts can usually be varied. You can often alter the candlestick charts to show market movements in the order of 1 minute, 2 minutes, 5 minutes, 10minutes, 1 hour, 1 day or 1 week periods.

With a number of the charts you can also update the settings to help your technical analysis. For example you can add Bollinger Bands and 20, 50 and 100 point Moving Averages and Commodities candlestick charts are currently available with:


  Financial Spreads ETXCapital CMC Markets IG Index Capital Spreads GFT
Trading Charts? Financial Spreads: Trading Charts? ETXCapital: Trading Charts? CMC Markets: Trading Charts? IG Index: Trading Charts? Capital Spreads: Trading Charts? GFT: Trading Charts?
Spread betting charts may also be available from other companies. Notes.



Sample Coffee Chart from Financial Spreads:

Coffee Trading Chart


4) How do you Spread Bet on the Coffee Market to Go Up?

Coffee Spread Betting Example

Should you decide to spread trade on a commodity such as Coffee then, looking at a spread betting website like Capital Spreads, you might find a spread trading price of $1,311 - $1,319.

That means you can spread trade on Coffee to move higher than $1,319 or to move lower than $1,311.

If you are spread betting, you bet on every unit the market rises or falls; with the Coffee market a unit is $1 of the commodity's price movement.

So, you might decide to spread bet £6 for every $1 Coffee increases or decreases.

Buying - Spread Betting on the Market to Go Up

If you were to go long of Coffee at $1,319 and the commodity increased then the spread could move to $1,332 - $1,340. If this were the case, you could decide to take your profits by closing your trade at $1,332.

Profit/Loss = (closing level of the market - opening level of the market) x stake per $1
Profit/Loss = ($1,332 - $1,319) x £6 per $1 stake
Profit/Loss = $13 x £6 per $1
Profit/Loss = £78 profit

Of course, if the market had moved down to, as an example, $1,304 - $1,312, you may want to close your spread bet to limit your losses. Therefore, you would sell the market at $1,304.

Therefore, with the same £6 per $1 stake:

Profit/Loss = (closing level of the market - opening level of the market) x stake per $1
Profit/Loss = ($1,304 - $1,319) x £6 per $1 stake
Profit/Loss = -$15.0 x £6 per $1
Profit/Loss = -£90 loss

5) How do you Spread Bet on the Coffee Market to Go Down?

A key advantage of placing a spread bet is that investors can go short of the markets.

When we began this example, the coffee spreads market was priced at $1,311 - $1,319.

If you were to go short of Coffee at $1,311 and the commodity fell then the spread could become $1,291 - $1,299. Assuming this was the case, you might decide to close your spread bet for a profit at $1,299.

Profit/Loss = (opening level of the market - closing level of the market) x stake per $1
Profit/Loss = ($1,311 - $1,299) x £6 per $1 stake
Profit/Loss = $12 x £6 per $1
Profit/Loss = £72 profit

The markets can of course rise, if the market had risen to, for example, $1,317 - $1,325, you might want to close your spread bet to prevent further losses. If that happened, you would buy at $1,325.

You would do this with the same £6 per $1 stake:

Profit/Loss = (opening level of the market - closing level of the market) x stake per $1
Profit/Loss = ($1,311 - $1,325) x £6 per $1 stake
Profit/Loss = -$14 x £6 per $1
Profit/Loss = -£84 loss


Coffee (Robusta Coffee January) market quoted as of 16-Nov-09.



6) Where can I find more on Spread Betting on Commodities?


For more details on trading Commodities markets see Commodities Spread Betting.


Coffee Trading Information

If you are new to trading coffee and spread betting on softs then it is always a good idea to have an overview of the basics of the market.

Although the units that commodities are traded in are fixed, when spread betting on commodities you trade in the currency that suits you eg Pounds per unit, Euros per unit or Dollars per unit.

Coffee Arabica is traded in 0.01¢ / lb (pound).

Therefore you could bet €5 per 0.01¢ that Arabica goes up or down. If the price / lb then moved by 0.15¢ then your profit or loss would alter by €5 per 0.01¢ x 15 = €75.

Likewise you could bet £8 per 0.01¢ that Arabica goes up or down. If the price / lb then moved by 0.20¢ then your profit or loss would alter by £8 per 0.01¢ x 20 = £160.

World Coffee Consumption

In 2007 coffee consumption came to 123 million 60kg bags, representing a 1.63% year-on-year increase. America was the largest consumer of coffee in the world representing over 17% of the market. Brazil was the second largest coffee consumer and accounted for more than 13% of global coffee consumption.

US coffee consumption over the past five years has varied between 20 and 21 million bags. However Brazilian consumption has been growing at an average rate of 5% per annum over the past five years, with 2007 growth surpassing the average and growing 6.4% to 17 million 60kg bags. Assuming coffee consumption growth in America remains at current levels, then Brazil could surpass America in being the world’s largest consumer within the next five years.

Germany, Japan, Italy and France are the next major coffee consuming countries; each country consumes between 4% and 8% of total world coffee consumption.

Together, the six countries consumed a total of 65 million bags in 2007, accounting for 53% of the world’s coffee consumption.

Consumption Variables

As Anthony Grech of IG Index reported earlier this year “It is important to note that consumption, or demand for coffee, depends on the price and currency strength in the producing country, versus the importing country’s currency. In addition, consumer tastes, number of substitutes and population growth are some of the major factors that influence demand.”

Input Cost Variables

According to the International Coffee Organisation (ICO) the weakening US dollar and soaring price of oil in 2007 and first half of 2008 has increased coffee production costs. In order to help counter the problem of rising costs in the coffee supply chain, Brazil and Colombia, the largest coffee producers, have been implementing compensatory schemes. The Brazilian authorities recently renewed their ‘PEPRO’ programme, which aims at supporting coffee prices through auction sales, and the Colombian government has been reimbursing coffee growers up to 24% of their annual fertiliser costs. Such government compensatory schemes are likely to continue supporting coffee supply.

Coffee Production Growth

On a global scale, the ICO predicts that world coffee production in crop year 2008/2009 is to rise by around 3% to 127 million 60kg bags.

Supply and Demand

The rate of consumption has been growing at an average of 2% pa over the past five years. Assuming that consumption continues to grow at the same rate then it could rise between 125 million and 126 million 60kg bags in 2008/2009 and to 127 million and 128 million bags by 2009/2010. This is roughly in line with the estimates provided by the ICO, which predict world consumption to reach 125 million bags in 2008/2009 and 127 million bags in 2009/2010.

Coffee Pricing and Quality

Note that if you are spread betting on Coffee that there are two types of coffee that you can trade, Robusta and Arabica.

Robusta is the lower quality coffee and accounts for approximately 40% of world coffee production and is more likely to come from Vietnam and Indonesia.

Arabica is the higher quality coffee, accounts for 60% of World Coffee production and is more likely to come from Brazil and Colombia.



Advert: FinancialSpreads.com - Live Prices, Charts, Indices, Equities,
Commodities, Forex and more >> Apply for an Account


Note - Spread Betting carries a high level of risk to your capital and you can lose more than your initial investment, it may not be suitable for all investors. Ensure you only speculate with money that you can afford to lose and that you fully understand the risks involved and seek independent financial advice where necessary.

'Coffee Spread Betting', Feature by D. Jones, last update: 19-Jan-12



Related articles:

Commodities Spread Betting, 3-Feb-12,
Commodities Spread Betting guide. Your Commodities Spread Betting questions answered: where to spread bet, how to trade, where to find free Commodities charts, real time prices, how to trade and......see: Commodities Spread Betting

Crude Oil Spread Betting, 3-Feb-12,
Crude Oil Spread Betting guide. Your Crude Oil Spread Betting questions answered: where to spread bet, how to trade, where to find free Oil charts, real time prices, how to trade and…...see: Crude Oil Spread Betting

Gold Spread Betting, 3-Feb-12,
Gold Spread Betting guide. Your Gold Spread Betting questions answered: where to spread bet, how to trade, where to find free Gold charts, real time prices, how to trade and......see: Gold Spread Betting

10 Reasons to Spread Bet, 2-Feb-12,
10 Reasons to Spread Bet. Spread betting offers a range of positive reasons of why you should consider spreads as part of your investment portfolio: 1)Tax Free Trading: A well publicised aspect...see: 10 Reasons to Spread Bet

Commodity Spreads, 3-Feb-12,
Commodity Spreads guide. Your Commodity trading questions answered: where to trade, where to find free Commodities charts, real time prices, how to trade and......see: Commodity Spreads

Crude Oil Spreads, 3-Feb-12,
Spread Betting guide to Crude Oil. Your Oil Spread Betting questions answered: where to find free Commodities charts, real time prices, how to trade and...see: Crude Oil Spreads

Gold Spreads, 3-Feb-12,
The guide to Spread Betting on Gold. Your Gold Spread Betting questions answered: where to find free Commodities charts, real time prices, how to trade and...see: Gold Spreads

Natural Gas Spread Betting, 19-Jan-12,
Natural Gas Spread Betting guide. Your Natural Gas Spread Trading questions answered: where to spread bet, where to find free Natural Gas charts, real time prices, how to trade and......see: Natural Gas Spread Betting

Platinum Spread Betting, 19-Jan-12,
Platinum Spread Betting guide. Your Platinum Spread Trading questions answered: where to spread bet, where to find free Platinum charts, real time prices, how to trade and......see: Platinum Spread Betting

Copper Spread Betting, 19-Jan-12,
Copper Spread Betting guide. Your Copper Spread Trading questions answered: where to spread bet, where to find free Copper charts, real time prices, how to trade and......see: Copper Spread Betting

Silver Spread Betting, 19-Jan-12,
Silver Spread Betting guide. Your Silver Spread Trading questions answered: where to spread bet, where to find free Silver charts, real time prices, how to trade and......see: Silver Spread Betting

Sugar Spread Betting, 19-Jan-12,
Sugar Spread Betting guide. Your Sugar Spread Trading questions answered: where to spread bet, where to find free Sugar charts, real time prices, how to trade and......see: Sugar Spread Betting

Wheat Spread Betting, 19-Jan-12,
Wheat Spread Betting guide. Your Wheat Spread Trading questions answered: where to spread bet, where to find free Wheat charts, real time prices, how to trade and......see: Wheat Spread Betting

Coffee Spread Betting, 19-Jan-12,
Coffee Spread Betting: On a global scale, the ICO predicts that world coffee production in crop year 2008/2009 is to rise by around 3% to 127 million 60kg bags. If you are new to spread betting on coffee and other softs then it is always a good idea to...see: Coffee Spread Betting

UK Oil Spread Betting, 19-Jan-12,
UK Oil Spread Betting guide. Your UK Oil Spread Trading questions answered: where to spread bet, where to find free UK Oil charts, real time prices, how to trade and......see: UK Oil Spread Betting

US Oil Spread Betting, 19-Jan-12,
US Oil Spread Betting guide. Your US Oil Spread Trading questions answered: where to spread bet, where to find free US Oil charts, real time prices, how to trade and......see: US Oil Spread Betting

Spread Betting on Soft Commodities, 19-Jan-12,
Softs prices can rapidly increase on the back of high oil prices due to increased transport and energy costs. Prices are also affected by adverse weather conditions and political policies that force farmers to grow certain types of crop. But if you are spread betting on Softs what about the facts? 10 Facts for Spread Betting on Softs...see: Spread Betting on Soft Commodities

Live Cattle Spread Betting, 19-Jan-12,
Live Cattle Spread Betting guide. Your Live Cattle Spread Trading questions answered: where to spread bet, where to find free Live Cattle charts, real time prices, how to trade and......see: Live Cattle Spread Betting

Lean Hogs Spread Betting, 19-Jan-12,
Lean Hogs Spread Betting guide. Your Lean Hogs Spread Trading questions answered: where to spread bet, where to find free Lean Hogs charts, real time prices, how to trade and......see: Lean Hogs Spread Betting

Soybean Spread Betting, 19-Jan-12,
Soybean Spread Betting guide. Your Soybean Spread Trading questions answered: where to spread bet, where to find free Soybean charts, real time prices, how to trade and......see: Soybean Spread Betting

Cocoa Spread Betting, 19-Jan-12,
Cocoa Spread Betting guide. Your Cocoa Spread Trading questions answered: where to spread bet, where to find free Cocoa charts, real time prices, how to trade and......see: Cocoa Spread Betting

Oats Spread Betting, 19-Jan-12,
Oats Spread Betting guide. Your Oats Spread Trading questions answered: where to spread bet, where to find free Oats charts, real time prices, how to trade and......see: Oats Spread Betting

Corn Spread Betting, 19-Jan-12,
Corn Spread Betting guide. Your Corn Spread Trading questions answered: where to spread bet, where to find free Corn charts, real time prices, how to trade and......see: Corn Spread Betting

Trading the Crude Oil Markets, 30-Jul-10,
Trading the Crude Oil Markets: For now oil prices seem have to halted the sell off that commenced at the beginning of May 2010. Underlying the market movements though is the undeniable fact that...see: Trading the Crude Oil Markets

Key Commodities Markets Grind Higher, 1-Jul-10,
Key Commodities Markets Grind Higher: Gold continues to grind higher and the metal has had another go a breaking above the $1,265 mark. Like gold, the crude oil spread betting market has also...see: Key Commodities Markets Grind Higher

Spread Betting and the Crude Oil Markets, 21-May-10,
Spread Betting and the Crude Oil Markets: Not so long ago crude oil looked like it was on an unstoppable march back to the $100 barrel level. At the moment though, in the middle of 2010, we find ourselves...see: Spread Betting and the Crude Oil Markets

Spread Trading Gold and Crude Oil, 29-Apr-10,
Spread Trading Gold and Crude Oil: The gold charts look bullish as support levels have been holding out for some time. If you are looking to speculate on the gold spreads then beware of...see: Spread Trading Gold and Crude Oil

Gold Trading, 9-Apr-10,
Gold Trading: If anyone regularly trades the gold market they will know that any Dollar negative news often translates into support for higher gold prices. This is not a surprise when ...see: Gold Trading

Trading the Gold Market, 9-Apr-10,
Trading the Gold Market: If you are looking to trade the gold markets then note that financial spread trading offers a quick and convenient option. Also if you start to trade then you are not restricted to...see: Trading the Gold Market

High Crude Oil Prices, 18-Jul-08,
Trying to stop the open market trading a product that you yourself do not control is just so pointless as to be laughable. When the boot was on the other foot and oil was down at $12 at least OPEC did not threaten to withhold supply and crude oil continued to be freely traded. For the nasty, ruinous speculators who are interested, the crude oil spread betting market is now trading at around £140 per barrel with FinancialSpreads.com ...see: High Crude Oil Prices





Trading News
Looking to improve your trading results? Get free trading tips and trading analysis as well as the latest trading offers » Trading News.



Financial Spread Betting Prices


Financial Spreads
Trade some of the Tightest Spreads:

FinancialSpreads.com - tight spreads FTSE 100: 1pt
FinancialSpreads.com - tight spreads DAX 30: 1pt
FinancialSpreads.com - tight spreads EUR/GBP: 1pt
FinancialSpreads.com - tight spreads EUR/USD: 1pt
FinancialSpreads.com - tight spreads USD/JPY: 1pt
FinancialSpreads.com - tight spreads GBP/USD: 2pts
FinancialSpreads.com - tight spreads Wall Street: 2pts
plus:
FinancialSpreads.com - tight spreads   Tax Free Profits†
FinancialSpreads.com - tight spreads   2,000+ Markets: Forex, Shares, Indices & Commodities
Financial Spreads


Risk Warning - Spread betting carries a high level of risk to your capital & you may lose more than your initial investment. Only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved, seek financial advice where necessary & make sure spread betting meets your investment objectives.


The above information is correct at time of writing. The spreads quoted are for Rolling Daily markets and may vary out of hours. † Tax Law can change.

FinancialSpreads.com is a trading name of London Capital Group Ltd which is authorised & regulated by the Financial Services Authority (FSA). Registered address: is 4th Floor, 12 Appold Street, London EC2A 2AW. All information correct at time of publication.

   
Risk Warning: Spread Betting carries a high level of risk to your capital and you can lose more than your initial investment, it may not be suitable for all investors. Ensure you only speculate with money that you can afford to lose and that you fully understand the risks involved and seek independent financial advice where necessary.

Disclaimer: Online-Spread-Betting.com does not endorse the information and analysis available on this site. It is provided purely for information purposes and is delivered as a personal view of the writer. Under no circumstances is the information hereon to be used or considered as, an offer to sell, or a solicitation of any offer to buy. The website content does not constitute investment advice and neither the individual contributor nor Online-Spread-Betting.com accepts any responsibility for any use that may be made of the content.

* Tax Free Trading: Tax law is subject to change. It may also differ if you pay tax in a jurisdiction outside the UK.


Spread Betting Firms
Capital Spreads
City Index
CMC Markets
ETXCapital
Financial Spreads
GFT
IG Index
Spreadex
Spread Betting Offers
Spread Betting News
Daily Spread Bet Tips
Daily Market Analysis
Daily Shares News
Daily FX Trading
Daily Blog
Daily Market Data
Daily Spread Betting
Trading News
Spread Trading Strategy
Spread Betting
Financial Spread Betting
Financial Fixed Odds
Financial Glossary
Trading Directory
© Copyright Online-Spread-Betting.com 2007-2012. All rights reserved.