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Understanding the US Dollar Impact on the Coffee Market - Part 1

Updated: Feb 22, 2022

#Coffee is both a financial product and a global #commodity. It is cultivated, consumed, shipped and traded across almost every country across the globe.

Due to its global nature, the US #dollar performs an outsized role as a common #currency in the #trade of this product. Notably, the two primary #coffeefutures #markets (ICE Eur and ICE US), are priced in #USD. This makes understanding the purchasing power of the US dollar foundational to understanding the price of coffee.


Every day the purchasing power of the US dollar fluctuates, and this causes a direct impact in the coffee market. This is independent from the #fundamentals, a change in the dollar value will change the price of coffee.