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Coffee trading Meridiana Shipping Agency

Coffee comes from the Latin form of genus Coffea, a member of the Rubiaceae family, which includes more than 500 genera and 6,000 species of tropical trees and shrubs. Coffee is a perennial crop. The seeds of the fruit or berry are known as coffee beans. After planting, the coffee tree bears its first crop in 3 to 4 years, it can then continue to produce fruits for the next 40 years.

Grades available

There are about 25 major species within Coffee. However the two major species are Arabica and Robusta.

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Arabica

Arabica coffee represents almost 70% of the world’s coffee production. It is grown mainly in the tropical highlands of the Western Hemisphere (South American countries, Brazil, Columbia, Mexico, Honduras, India and Nicaragua) and Kenya. The plant can reach a height of 5 to 6 meters when fully grown. The fruits are oval and mature in 7 to 9 months; they usually contain two flat seeds (the coffee beans) - when only one bean develops it is called a Pea berry. Arabica coffee is often susceptible to attack by pests and diseases. Therefore resistance is a major goal of plant breeding programs. Arabica trees are grown at an altitude of about 1,250 meters above sea level. The preferred climatic conditions are a temperature 59 to 75 degree Fahrenheit (15 to 24 degree Celsius) and an annual rainfall of about 200 cm (about 80 inch). Arabica coffee has a milder taste than Robusta. It is also known as milds or other milds. Espressos are prepared with Arabicas. Espresso is covered with beautiful foam of attractive color that acts as a flavor trap.

Robusta

Robusta coffee is grown mainly in the low, and hot areas of Africa (Ivory Coast and Uganda) and Asia (Indonesia, Vietnam and India) and Brazil. The plant can grow up to about 10 meters as a shrub or a tree with a shallow root system. The fruits are round and take between 9 and 11 months to ripen while the seeds are oval and smaller than the Arabica beans. Robustas are grown at a lower altitude of about 750 meters above sea level. The preferred climatic conditions are temperatures between 75 and 85 degree Fahrenheit (24-29.5 degree Celsius) and an annual rainfall of about 150 cm (about 60 inch). Robustas have a stronger taste. They are used for instant coffee, cappuccinos and blends.

Supply and demand

The supply of coffee is largely affected by weather conditions, natural calamities (like earthquake, floods, and droughts), strikes, health of the coffee plant, harvesting practices, internal policies of the governments and the socio-economic problems of producing countries. Coffee is the second largest traded commodity in the world, after crude oil. Coffee is an extremely volatile market because it is governed by various factors. The price of coffee is chiefly affected by the demand, supply and stock positions. Stock, in both producing and importing countries is decreasing, while production and consumption are rising steadily. In such a situation the stock/consumption ratio assumes a great significance as an indicator of price volatility.