Coffee Historical Price Charts – Coffee Price History - FX LeadersFX Leaders

Coffee Historical Price Charts – Coffee Price History

Posted Wednesday, January 20, 2021 by
Arslan Butt • 4 min read

Coffee is a drink brewed from roasted coffee beans that come from the berries of certain coffee varieties. When the coffee berries change from green to bright red, they are picked, processed and dried. Then the dried coffee seeds (referred to as “beans”) are roasted to differing degrees to get various flavors. The roasted beans are ground and then brewed with near-boiling water to make the drink known as coffee.

 

Coffee is dark in color, bitter and slightly acidic, and it has a stimulating effect on the human body, mainly due to its caffeine content. It is one of the most popular drinks throughout the world, and it can be brewed and served in various ways, for example, as espresso, French press, caffè latte or filter coffee. It is normally served hot, although chilled or iced coffee is common, especially in summer. Sugar, sugar substitutes, milk or cream are usually used to reduce its bitter taste.

 

Historical Data Table:

Coffee Historical Price Data

 

Jan 11, 2021121.45122.30123.20118.7521.76K
Jan 08, 2021123.70120.30124.05119.2023.80K
Jan 07, 2021121.10121.00122.75119.3517.99K
Jan 06, 2021120.90125.10125.55120.6027.25K
Jan 05, 2021125.10125.95126.55122.3022.17K
Jan 04, 2021126.15128.40129.40125.2521.81K
Dec 31, 2020128.25125.70129.00125.6015.66K
Dec 30, 2020125.40125.30126.75124.6510.92K
Dec 29, 2020125.40123.95125.90123.2011.05K
Dec 28, 2020123.35125.75126.50121.5013.62K
Dec 24, 2020125.95124.50127.65124.508.99K
Dec 23, 2020124.55124.05125.95123.9010.04K
Dec 22, 2020124.20123.90126.60122.9015.06K
Dec 21, 2020124.30124.25125.45120.4019.30K
Dec 18, 2020123.70126.30127.80123.68
Dec 17, 2020125.05126.30126.30125.000.00K
Dec 16, 2020125.05126.00126.00126.000.03K
Dec 15, 2020123.10124.55124.55124.550.01K
Dec 14, 2020123.55122.50123.85122.500.00K

 

Monthly Change:

 

DatePriceOpenHighLowChange %
Jan 21121.45128.25129.40118.7521.76K
Dec 20128.25120.20129.00114.75104.84K
Nov 20120.70103.90121.40102.15269.57K
Oct 20104.40110.95113.35102.95388.63K
Sep 20110.95132.25134.50108.30179.06K
Aug 20129.80118.20130.80109.70293.81K
Jul 20118.95102.80119.4095.45217.87K
Jun 20100.0595.85101.4592.70290.45K
May 2096.30104.25109.4095.85145.97K
Apr 20104.65117.75122.00102.65204.47K
Mar 20119.55112.75130.65102.80165.24K
Feb 20110.10102.00111.5097.40338.35K
Jan 20102.65129.55130.95100.15480.13K
Dec 19129.70118.00138.40118.00154.74K
Nov 19118.55102.15118.00101.10422.64K
Oct 19101.95101.05102.9092.20553.71K
Sep 19101.15101.15102.9097.25148.51K
Aug 1993.6097.8598.9589.60334.98K
Jul 1999.65112.55113.0598.10194.04K
Jun 19108.25104.85109.0094.00440.76K
May 19104.6091.70105.3086.75290.92K
Apr 1991.8594.0596.9586.35495.27K
Mar 1994.5097.5097.5092.60187.25K
Feb 1995.20106.15107.0093.60330.46K

 

Why is coffee important to traders?

 

The reason could be associated with the huge number of users. As per the latest data, around 2.25 billion cups of coffee are consumed daily, making coffee beans one of the most traded soft commodities globally. As of now, the coffee market is worth about $ 100 billion annually. As a result, it has become one of the most interesting yet volatile investment tools to trade. While some use coffee futures and options to hedge their portfolio, others speculate with it.

 

Why do investors prefer to trade in coffee?

 

There are many major reasons for trading in coffee. Let me share some of the most common factors:

 

  • Diversification

 

Diversification is seen as one of the key factors behind the coffee demand in the forex market. The presence of coffee in an equity-only portfolio can lower the volatility, due to the absence of a correlation between this commodity and other asset classes.

 

  • Safe Haven

 

Commodities can act as safe-haven assets, which provide traders with protection against inflation and a declining US dollar in times of global economic uncertainty and market turbulence, like the coronavirus crisis.

 

  • Speculation on coffee prices

 

Commodities can be highly volatile, experiencing excessive price swings. Trading coffee CFDs is one way to try and profit from drastic silver price fluctuations.

 

Coffee trading requires some attention, due to the occasional high volatility of the market and a wide choice of available instruments, from coffee derivatives, such as futures and options, to shares in companies involved in the industry.

 

What factors influence coffee prices?

 

Trading in coffee comes with a certain degree of volatility, with key factors that influence supply and demand, for example:

 

  • Climate changes: Coffee grows on small trees, which means the crop is susceptible to adverse weather conditions, such as freezing, frost and prolonged periods of dry weather. If supply levels lessen, due to ruined crops, prices will rise; conversely, and if the supply increases, the prices will decrease.

 

  • Oil prices: the two leading exporters of coffee (Brazil and Vietnam) are not exactly next door to the world’s largest importers. If oil prices go up, transport costs will increase, which means coffee prices will rise too.

 

  • Geopolitics:  As we know, coffee is mainly grown in developing countries; consequently, any political uncertainty can impact global coffee prices.

 

  • Discretionary income: Coffee is not compulsory for a person’s diet (no matter how much we try to argue that it is). High unemployment in the US and the EU can decrease coffee consumption.

 

How can we trade in coffee:

 

There are several ways to trade in coffee using the CMC Markets CFD Trading platform:

 

  • Coffee futures: The standard futures contract is the most common trading method for coffee. This is where you agree to exchange a quantity of coffee with another party at a predetermined future date and price. If coffee doesn’t get your blood pumping, perhaps futures will, as coffee futures can make wide swings within each trading day.

 

  • Coffee options: Some people favor options in this market, as it can give you a bit more of a buffer against price volatility. With the use of options, the holder doesn’t have to buy or sell the asset if they don’t wish to.

 

  • Coffee ETFs: The ETF is an investment fund that follows the performance of the coffee market directly. It can be purchased and sold on a securities exchange. This method can give investors exposure to coffee futures without the need for a more complicated futures account.

 

  • Coffee company stocks: Traders can also invest in a coffee company, such as Dunkin’ (DNKN) and Starbucks (SBUX). Just four companies, Sara Lee, Procter & Gamble, Nestle and Kraft buy almost 50 percent of all the coffee produced worldwide.

 

 

About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.