Table of contents
- Short summary
- What is coffee futures?
- How Coffee C works on ICE
- How to read price and tick value
- Arabica and Robusta
- What affects the coffee price?
- Season and the forward curve
- Reports and data
- The market picture in 2026
- Strategies for coffee futures
- Risk management
- How to trade it
- Standard or metric contract?
- Coffee vs cocoa and other commodities
- Checklist before you trade
- Sources
- Conclusion
- FAQ
Quick summaryWhat you should know about coffee futures
- KC is Coffee C futures on ICE Futures U.S. and is the global benchmark contract for Arabica coffee.
- One standard contract represents 37,500 pounds of green Arabica coffee, roughly 17 tonnes.
- The minimum price move is 0.05 cent per pound. That gives a tick value of $18.75 per contract.
- A one-cent move in KC equals $375 per contract before commission, fees and slippage.
- Brazil, Colombia, weather, frost, the Brazilian real, the Arabica/Robusta spread, stocks and USDA data are key drivers.
- Coffee C is physically delivered and has no daily price limit. Rollover, first notice day and position size must be planned before trading.
Coffee is a specialised soft commodity market
Coffee futures give direct exposure to one of the world's most actively traded agricultural commodities. The key contract for Arabica coffee is Coffee C, product code KC, on ICE Futures U.S. The contract is used by producers, exporters, trading houses, roasters, funds and active traders.
The coffee market differs from many other futures markets. Production is concentrated in tropical countries, supply is shaped by multi-year plant cycles, and a single frost night or a weak flowering period in Brazil can shift expectations quickly. At the same time, the price is affected by currency, stocks, freight, consumption and the relationship between Arabica and Robusta.
What is coffee futures?
A futures contract is a standardised agreement to buy or sell a set quantity of an underlying commodity at a later date. For exchange-listed Arabica coffee, Coffee C on ICE Futures U.S. is the global benchmark contract.
A coffee producer can sell futures to reduce the risk of a price fall before the crop is exported. A roaster can buy futures to dampen the risk of higher raw material costs. A trader with no physical connection to the coffee industry can take a long or short position to try to profit from price changes.
Most financial traders close or roll the position before the delivery process. The contract still has to be understood as a physical commodity contract. Delivery terms, certified lots, approved origin countries and warehouse locations affect the value of the futures contract, especially as expiry approaches.
If you're new to commodity markets, you should also read our guide to commodity futures. It explains hedging, speculation, margin and physical delivery more broadly.
How the Coffee C contract works on ICE
ICE describes Coffee C as the world's benchmark for Arabica coffee. The contract prices physical delivery of exchange-certified green coffee beans from approved origin countries to licensed warehouses in the US and Europe. Quality and origin can carry a premium or discount against the contract's basis.
| Feature | Coffee C futures |
|---|---|
| Exchange | ICE Futures U.S. |
| Product code | KC |
| Underlying commodity | Exchange-certified green Arabica coffee |
| Contract size | 37,500 pounds, roughly 17 tonnes |
| Price quotation | US cents per pound, with two decimals |
| Minimum price move | 0.05 cent per pound |
| Tick value | $18.75 per contract |
| Contract months | March, May, July, September and December |
| Settlement | Physical delivery |
| Daily price limit | None |
| Regular trading hours | 04:15-13:30 New York time |
Trading hours normally fall in the afternoon and evening in Europe, but local time can shift in the periods when the US and Europe change between daylight saving and standard time on different dates. Always check the ICE calendar and your broker's platform before placing an order.
ICE states that first notice day is seven business days before the first business day of the delivery month. The last trading day is one business day before the last notice day. Brokers may have their own liquidation deadlines that come earlier than the exchange deadlines.
Physical delivery requires clear procedures
Coffee C isn't a cash-settled CFD. If the contract is held too long, the position can enter the delivery process. That can trigger forced closing, fees or other obligations at your broker.
A private trader should therefore know the broker's rules for first notice day, the last day to hold the contract, and automatic liquidation. The position must be closed or rolled well in advance if physical delivery isn't the goal.
Deliverable coffee is tested for both physical quality and taste. ICE operates a basis system with premiums and discounts for different origins and delivery locations. That means Coffee C isn't just an electronic price chart; the contract is anchored in a detailed system for certification, storage and delivery.
How to read the price and tick value
Coffee C is quoted in US cents per pound. A screen price of 300.00 means 300 cents, or $3.00 per pound. With 37,500 pounds in the contract, the notional commodity value becomes $112,500.
You don't normally pay the full contract value. Instead, you post margin. That creates leverage: small percentage moves in the coffee price can produce large swings in the trading account.
Worked example
The minimum price step is 0.05 cent per pound, equal to $0.0005 per pound. The math is $0.0005 x 37,500 pounds = $18.75 per tick.
If you buy KC at 300.00 and sell at 306.00, the price has risen 6 cents per pound. The gross result is 6 x $375 = $2,250 per contract, before commission, exchange fees and slippage.
| Price move | Result per contract |
|---|---|
| 0.05 cent - one tick | $18.75 |
| 0.50 cent | $187.50 |
| 1 cent | $375 |
| 5 cents | $1,875 |
| 10 cents | $3,750 |
Margin isn't maximum risk. ICE and your broker can raise the margin requirement when volatility increases, and a gap move can cause the order to fill far from the planned stop price. Position size should be set by acceptable loss, not by how low the intraday margin at the broker happens to be.
Coffee C, Arabica and Robusta: what's the difference?
Coffee C is the benchmark contract for deliverable Arabica coffee. Arabica is often grown at higher elevation and is normally associated with a milder, more complex flavour profile. Robusta tends to have higher caffeine content, tolerates warmer lowland climates better, and is used widely in instant coffee and espresso blends.
ICE also offers a Robusta contract in London. This is a separate market with different contract size, price quotation, delivery structure and production geography. Vietnam is especially important for Robusta, while Brazil, Colombia, Ethiopia and several Central American countries are central to the Arabica market.
The prices influence each other because roasters can change the blend ratio between Arabica and Robusta for some products. Still, they aren't perfect substitutes. Quality requirements, recipes and consumer preferences limit how quickly demand can shift.
- Follow Coffee C for Arabica.
- Follow ICE Robusta as the alternative coffee type.
- Follow the spread between Arabica and Robusta as a signal of scarcity, quality and substitution.
What affects the price of coffee?
The coffee price is shaped by an interplay of biological production, physical trade and financial expectations. The market can react before an actual crop is damaged, because futures price probable future deliveries.
Weather and yield in Brazil
Brazil is the single most important factor for Coffee C. Arabica is grown especially in Minas Gerais, and the market follows rainfall during flowering, temperatures, soil moisture and the development of the coffee cherries closely.
Frost risk in the Brazilian winter can produce fast price swings. Even a weather forecast carrying a risk of near-freezing temperatures can lift the risk premium. Drought and extreme heat can also weaken flowering and fruit set, while rain at the right time can improve crop prospects.
The production cycle and other origins
Arabica trees can have alternating years of higher and lower yield. The cycle is useful as background, but not as a mechanical trading signal. Pruning, investment, weather and prior stress can make a supposedly strong year weaker, or a weak year better than historical patterns suggest.
Colombia is a major producer of washed Arabica and important for the physical quality Coffee C represents. Honduras, Guatemala, Mexico, Peru and Ethiopia can dampen or amplify developments in Brazil. When several regions see weak production at the same time, the market can become far more sensitive to changes in certified stocks.
The Brazilian real, stocks and consumption
Coffee trades in dollars, while a large share of Brazilian producers' costs are in reais. A weak real can make dollar exports more attractive and stimulate producer selling. A stronger real can reduce the willingness to sell and support dollar-denominated coffee.
The market follows global ending stocks, holdings in producer countries and ICE-certified stocks. Low stocks provide less buffer against crop failure and can make nearby contracts extra sensitive. High stocks can dampen the reaction to a weaker crop, but quality and geographic location are decisive.
Coffee demand is affected by population growth, income, café culture, home consumption and finished-product prices. Green coffee is only one part of the retail price of a cup of coffee, but persistently high raw material costs can affect margins and demand over time.
Season, crop cycle and the forward curve
The coffee market is seasonal, but the season varies between countries and coffee types. Brazil's marketing year starts in July, while Colombia and many other producers follow an October-based year. New coffee therefore enters the world market at different times.
Coffee C trades in March, May, July, September and December. Liquidity normally concentrates in certain contract months and shifts before expiry. Before choosing a contract, check volume, open interest, spread and how close you are to delivery deadlines.
The forward curve gives information about the physical balance. Contango means later contracts are priced higher than the nearby ones, often as a result of financing, storage costs or ample near-term supply. Backwardation means nearby contracts are priced higher, which can signal scarce deliverable supply or a high value on immediate access.
The difference between two delivery months is called a calendar spread. The spread can react sharply to changes in certified stocks, delivery economics and the movement of physical coffee. Historical seasonal patterns must always be assessed against this year's weather and stock levels.
Reports and data that move the coffee market
Coffee C doesn't have a single monthly WASDE table that alone defines the market. The analysis requires several sources with different publishing schedules.
USDA Coffee: World Markets and Trade
USDA's Foreign Agricultural Service publishes Coffee: World Markets and Trade twice a year. The report gathers forecasts for production, exports, imports, consumption and ending stocks. For KC, global Arabica production, Brazil's Arabica crop, Colombia, Ethiopia, Central America, global bean exports, consumption, ending stocks and revisions to the prior season are especially important.
A trader should compare the report with market expectations and the prior estimate. A large crop isn't automatically bearish if it's already priced in, and higher global production can be offset by lower stocks or stronger consumption.
Country reports and ICE data
USDA GAIN reports give more detailed information from key producer countries. Brazilian crop estimates from public and private sources can diverge because acreage, tree productivity and harvested volume have to be estimated before the full crop is known.
ICE publishes contract data, expiry information and reports tied to the market. Volume, open interest, certified stocks and changes in deliverable holdings can give information about how tight the physical balance is. Also follow the cash market, USD/BRL, freight rates and the price relationship between Arabica and Robusta.
The coffee market picture in 2026
The market picture has to be dated. The figures below are USDA forecasts published in summer 2026, not confirmed outcomes.
For the 2026/27 marketing year, USDA projected record-high global coffee production at 189.7 million 60-kilogram bags, global consumption at 179.7 million bags, bean exports at 131.4 million bags, and global ending stocks at 26.3 million bags. Brazil was estimated at 71.9 million bags in total, including 47.5 million bags of Arabica. Vietnam was estimated at 32.5 million bags, Colombia at 13.4 million, and Ethiopia at 12.1 million.
On paper, this points to a better supply balance. Production exceeds expected consumption, and ending stocks are expected to rise for a second year in a row. At the same time, global stocks are still expected to sit below the long-term average. That makes the picture more nuanced than a simple headline about a record crop.
Four questions for 2026
- Will the Brazilian harvest and exports confirm the large Arabica forecast?
- Will stock buffers stay low enough for the market to keep pricing in risk?
- How will Brazilian flowering look once the market starts pricing the next season?
- Will record-high consumption absorb more of the production increase than expected?
This isn't a market that can be analysed with "record crop means sell" alone. The price reaction depends on the gap versus expectations, developments in physical coffee, the forward curve and weather outlooks going forward.
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No strategy removes the risk. A fixed process can still reduce impulsive decisions and make results easier to evaluate.
Trend trading with fundamental confirmation
A trader can identify trend on the daily or four-hour chart and use fundamental data as a filter. Higher highs and lows, price above a rising moving average, and strength in nearby contracts can support a bullish scenario. Fundamental confirmation could be lower crop estimates, falling certified stocks, or a strengthening physical basis.
Breakout after consolidation
KC can build clear trading ranges while the market waits for new information. A breakout with volume can give a defined setup, but false breaks are common. Before entry, a trader should know whether the order is taken on the first break, after a retest, or only after a daily close outside the range.
Weather trading
Frost, drought and flowering-period weather can produce high volatility and price gaps. Weather trading requires more than reading a single forecast. Compare models, assess probability, geographic accuracy and the plants' stage of development. For many, the best decision is to reduce size or stand aside when a binary weather outcome could land while the market is closed.
Calendar spreads and relative value
A spread between two Coffee C months can express a view on stocks and physical scarcity with less direct exposure to the outright price level. The price relationship between Arabica and Robusta can also give signals, but the strategy is complex because the contracts have different units, currencies, qualities and production drivers.
Risk management in a volatile market
Coffee futures can move significantly in a short time and aren't suitable for everyone. The key risks are leverage, gaps, slippage, the absence of a daily price limit, margin increases, physical delivery, currency risk and model risk.
A standard contract can have a notional value well over $100,000, while margin is far lower. Small price changes can therefore produce large account swings. Weather, crop news and currency can also move the market without trading at every intermediate price. A stop order doesn't guarantee execution at the stop level.
A simple risk model
Assume the account is $30,000 and maximum risk per trade is 0.5%, or $150. If a technically sound stop needs to sit 3 cents from entry, the risk on one standard KC contract is 3 cents x $375 = $1,125 before slippage.
The standard contract is then too large for the plan. The solution isn't to move the stop artificially closer. The trader should consider a smaller position, wait for a setup with a smaller required stop distance, or let the trade go.
How to trade Coffee C
To trade genuine Coffee C futures, you need a broker that gives access to ICE Futures U.S., correct market data, and a platform that supports futures orders. You'll normally go through a suitability and risk assessment and post margin in an approved currency.
- Confirm access to ICE Coffee C with the symbol KC.
- Check real-time data and the cost of an ICE subscription.
- Compare commission, exchange fees and platform costs.
- Understand intraday and overnight margin.
- Read the rules ahead of first notice day and physical delivery.
- Check currency conversion between your home currency and USD.
- Use stop, bracket and OCO orders where available.
- Check reporting and customer support.
You can read our review of EdgeClear as an example of a specialised futures broker. Always compare current terms and confirm the broker offers the relevant ICE contract in your jurisdiction.
A practical workflow is to start with simulated trading, subscribe to correct ICE data, follow a single contract month, and document how the market reacts to weather, USDA data and stock changes. Real capital should only be considered once tick value, trading rhythm and delivery rules are fully understood.
Standard or metric Coffee C contract?
Standard KC represents 37,500 pounds and has a tick value of $18.75. ICE also offers Coffee C Metric Futures with product code AC. The metric contract represents 10 tonnes, is quoted in dollars per tonne, and has a minimum step of $1 per tonne, equal to $10 per contract.
A smaller notional size can make risk management simpler, but availability, volume, open interest and spread must be checked. A contract with a lower tick value isn't automatically cheaper to trade if the order book is thin or the broker has higher relative costs.
CFDs on coffee may also be offered by some providers, but they aren't the same as an exchange-listed KC contract. Price basis, spread, financing cost, counterparty risk and rollover method can differ. Read the product terms before comparing.
Coffee compared with cocoa and other commodities
Coffee and cocoa are both described as soft commodities and trade on ICE, but the price drivers and contracts differ.
| Market | Main code | Contract size | Key price drivers |
|---|---|---|---|
| Coffee C | KC | 37,500 lb | Brazil, Arabica crop, frost, the real, stocks and consumption |
| Cocoa | CC | 10 tonnes | West Africa, crop disease, weather, processing and stocks |
| Robusta coffee | RC/LRC | 10 tonnes | Vietnam, Brazil, Asian demand and stocks |
Cocoa is especially concentrated in West Africa, while the Arabica market has Brazil as the dominant single player and several important producers in Latin America and Africa. Both markets can see sharp supply shocks, but a coffee trader also needs to understand the relationship between Arabica and Robusta.
Read also our guide to cotton futures and our guide to cocoa futures for a more detailed comparison. For portfolio risk, correlation shouldn't be assumed stable: coffee and cocoa can move in the same direction at times, but for completely different fundamental reasons.
Checklist before you trade coffee futures
- Confirm the instrument is ICE Coffee C with product code KC.
- Check the chosen delivery month, volume and open interest.
- Calculate tick value and the result at your planned stop before placing the order.
- Check first notice day, the last trading day and your broker's earlier liquidation deadline.
- Read the latest USDA coffee report and note changes in production, consumption and stocks.
- Follow Brazilian weather, USD/BRL and developments in the Arabica crop.
- Check the forward curve and relevant calendar spreads.
- Assess upcoming reports, holidays and weather events that could create gaps.
- Include commission, exchange fees, market data and slippage in your risk budget.
- Document entry, stop logic, target and maximum acceptable risk.
Sources and data
- ICE Futures U.S.: Coffee C Futures
- ICE Futures U.S.: Coffee C Metric Futures
- USDA Foreign Agricultural Service: Coffee
- USDA FAS: Brazil Coffee Annual 2026
Conclusion: Coffee C demands discipline
Coffee C is the global benchmark contract for Arabica and gives a direct, transparent link to the physical coffee market. The contract is liquid and information-rich, but 37,500 pounds per contract, a tick value of $18.75, and the absence of a daily price limit make it capital-intensive.
The 2026 market picture combines record-high forecast production with record-high consumption and stocks that still sit below the long-term average. A robust analysis therefore has to go further than the headline about a large Brazilian crop. Weather, physical availability, the forward curve, currency and expectations determine how new information actually affects KC.
For a trader, the most important task is matching the contract to account size. Calculate risk in dollars before every trade, know the delivery deadlines, and reduce size when weather or reports could create a gap.
Risk warning
Futures carry significant risk and can lead to losses exceeding the margin deposited. This content is general information, not personal investment advice. Always check current contract specifications, margin requirements and broker rules before trading.
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Frequently asked questions about coffee futures
Short answers about KC, contract size, tick value, physical delivery, contract months and risk.
The product code at ICE Futures U.S. is KC. Some trading platforms add a month and year to the symbol or use their own display format. Confirm the instrument is the physical Coffee C contract, not a CFD, a Robusta contract or a continuous synthetic chart.
One standard contract represents 37,500 pounds of green Arabica coffee, roughly 17 tonnes. The notional dollar value varies with the coffee price. At 300 cents per pound, the commodity value is $112,500.
The minimum price move is 0.05 cent per pound. With 37,500 pounds per contract, this gives a tick value of $18.75. A move of a full cent per pound equals $375 per contract.
ICE lists standard contracts for March, May, July, September and December. Liquidity varies between the months and normally shifts before expiry. Check volume, open interest and delivery deadlines before choosing a contract.
Yes. The contract settles through physical delivery of certified coffee if the position is held into the delivery process. Financial traders should know their broker's deadlines and close or roll the contract well in advance.
ICE states no daily price limit for Coffee C. The market can therefore move significantly in a single trading day. Stop orders, margin and account size must be planned without assuming an exchange-set maximum daily move.
The large forecast Brazilian Arabica crop, still relatively low global stock buffers, weather during the next flowering, the Brazilian currency, and the development of physical exports are key factors. New data must be assessed against what the market has already priced in.
Yes, if a futures broker accepts customers from your country and offers ICE Futures U.S., the necessary market data and the KC contract. Availability and terms can change. Check regulation, fees, margin and delivery rules directly with the broker.
Coffee C has high notional value, physical delivery and significant volatility. The contract is therefore demanding for beginners. Simulated trading, a full understanding of tick value, and conservative risk management should come before real capital is considered.