Coffee bean roasting price analysis: understand the market situation and grasp the central price

Market analysis

The price of coffee beans roasted on behalf of others is an important link in the coffee industry chain, and is of great significance to both coffee producers and consumers. Understanding the market situation can help us grasp the central price and make better purchasing and sales decisions.

Global coffee bean supply and demand

First, we need to pay attention to the global supply and demand of coffee beans. According to data from the International Coffee Organization (ICO), the global demand for coffee has continued to grow in recent years. In particular, consumption in Asia has shown a rapid growth trend. This has led to a continuous increase in demand for high-quality, specialty coffee beans worldwide.

Main production areas and influencing factors

Secondly, we need to pay attention to the main production areas and their influencing factors. Brazil, Colombia, Vietnam and other countries are the three largest coffee producing countries in the world, and the high-quality beans they produce occupy an important position in the market.

However, coffee production is highly volatile, mainly affected by a variety of factors such as climate change, pests and diseases, and policy factors. For example, natural disasters such as drought in Brazil and floods in Vietnam can lead to a decline in production, thereby pushing up the price of coffee beans for roasting.

Trading Market and Price Formation Mechanism

After understanding the situation in the main producing areas, we need to pay attention to the trading market and price formation mechanism of coffee bean roasting. Currently, the two most important coffee futures markets in the world are the New York Mercantile Exchange (ICE) and the London International Financial Futures Exchange (LIFFE).

These futures markets see a lot of buying and selling activity, and supply and demand determine the price of coffee beans for roasting. When supply is tight, prices rise, and when supply is plentiful, prices fall.

Central price and reference range

It is very important to know the central price, which can help us grasp the reasonable range in the process of purchasing or selling. Based on historical data analysis and current market forecasts, we can determine a central price and set a reference range based on this.

For example, according to data analysis over the past few years, the price of Arabica coffee beans roasted in Brazil fluctuates between $2 and $3 per pound. Therefore, under the current market conditions, we can set the central price at $2.5 and the reference range at $2.3 to $2.7.

Risk Management and Decision Making

Finally, based on understanding the market situation and grasping the central price, we need to conduct risk management and decision-making. For coffee producers, they need to determine whether to sell at a price higher or lower than the central price based on their own production costs, quality advantages and other factors.

Coffee consumers need to consider their own needs, budget and other factors to decide whether to purchase at a price higher or lower than the central price. At the same time, they should also pay attention to market supply and demand changes and price fluctuation trends, and adjust their decisions in a timely manner.

Summarize

From the above analysis, it can be seen that better purchasing and sales decisions can be made based on understanding the market situation and mastering the central price. At the same time, risk management and timely adjustment of decisions are also very important. Only by constantly paying attention to market dynamics and responding flexibly according to actual conditions can we gain better benefits in the market where the price of coffee beans is fluctuating.