Coffee, History, Uses, Import, Export, Online Trading
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Coffee Home » Coffee
History

It may seem strange but coffee hasn't been around forever! In fact it was not discovered until around 600AD in the Middle East and only came into Europe in the 16th Century. In the 500 or so years since then it has spread around the world and become an international trade.

Characteristics

The two types of coffee beans are Arabica and Robusta. Arabica beans are considered the most flavorful and in turn command a premium in the market place. Robusta beans tend to be bitterer and less palatable, but they have a 50% higher concentration of caffeine than Arabica beans.

Uses

Drinking coffee and other beverages that contain caffeine throughout the day seems to increase alertness and clear thinking. Caffeine can also improve alertness after sleep deprivation. Combining caffeine with glucose as an "energy drink" seems to improve mental performance better than either caffeine or glucose alone.

Export and Import

While coffee production occurs around the world, primary production is dominated by countries such as Brazil, Vietnam, Indonesia and Columbia. Each of these countries has built a thriving business based on exporting coffee around the world. In 2005, Brazil produced 2 million metric tons of coffee beans, which is over twice as much as Vietnam, its nearest competitor.
Similarly, the primary consumers are Colombia, Brazil, Mexico, Italy, Holland, Denmark, and Germany and so on.

Affecting Factors

The price is influenced by the following factors:
  • Demand and supply
  • Micro economic factor
  • Geopolitical factor
  • Natural calamities
Why trade coffee through NDEX:

Contract size: Regular (30,000 kg)
Low transaction cost: Fixed spread of NPR 0.12 per 1 KG
Generous leverage: On all products that are clearly detailed on the trade.
Initial margin: Rs. 45000 (Regular)
Hedging capability: Can take long or short position from same account
Months: Feb, Apr, Jun, Jul, Aug, Oct
Season: Early Spring

Trading time:

Daily Open Time 1:15:00 AM
Daily Close Time 11:44:59 PM


Conclusion

Coffee is a key cash crop in various developing countries. Coffee accounts for 60% of Ethiopia's exports. The current belief is that more than 100 million people in these countries depend on coffee as their primary source of income. Millions upon millions of cups of coffee are consumed throughout the world each year. From its origins in the ninth century to its humble commercial beginnings at the Kiva Han to its mega-star status in today's modern arena, coffee has cemented its position as an essential traded commodity
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