In commodity market terminology, coffee is a “soft” commodity like cocoa and sugar and is basically a bean produced by several species of evergreen bush of the genus Coffea from which the beans are roasted. The two main types of coffee beans in world commerce are the Coffea arabica and the Coffea canephora. Coffee is a major world commodity and was a top export for 12 countries in 2004. In 2005, it was the seventh- largest agricultural commodity by export value. Coffee is one of the most popular beverages on the planet.
Coffee futures are traded on the NYMEX or New York Mercantile Exchange and on the Intercontinental Exchange or ICE electronic trading platform. Coffee futures on the NYMEX are for 37,500 pounds per contract and are traded by open outcry on the floor of the NYMEX. Quotes are in U.S. Dollars and cents with a minimum fluctuation of $0.0005 a pound or $18.75 per contract. Trading is on the March, May, July, September and December cycle for the next 23 months and settlement is financial. The last day of trading is on the day immediately preceding the first notice day of the corresponding trading month of Coffee "C" futures at ICE Futures U.S.