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Understanding Physical Coffee Prices

It is a well-worn cliché to those of us in the #coffeeindustry to compare coffees to wines but it helps us convey to the lay-person the variety and depth of the #coffeemarket rather succinctly. Much like in the analogy of wine, the array of origins, qualities and preparations in #coffee not only creates a variety of flavor profiles but also a variety of pricing and availability.

The global coffee market captures this variability in pricing using a method shared with many other #commodities, we use a differential versus the #futures market. In this article we are going to examine coffee #differentials by looking at how coffee is priced globally, what makes them coffee differentials similar and different from other commodities and also, how we can use “diffs” to understand the global coffee market.

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