The coffee trade is always complex and has many volatile dynamics that can cause values to change. The price of coffee, while largely influenced by news from Brazil, sometimes moves based on events in Colombia, Vietnam, and other countries. However, traders of this commodity do well to pay attention to Brazil as a central point in terms of climate, the foreign exchange market, and trade.
Coffee Exchange rate and Price in forex
Seasonal weather rumors about rainfall often provoke volatility in prices due to their influence on crop yields. Coffee is currently grown in various geographic areas, but commodity traders still mainly focus on the weather and currency fluctuations in Brazil through the US Dollar/Brazilian Real especially, which influence the coffee stock exchange. The recent volatility of the Dollar vs Real has undoubtedly influenced the price of coffee through the ICE (Intercontinental Exchange), where Arabica coffee is speculated upon and then placed in trading CFD assets for retail traders through their brokers' platforms, but this is normal within the commodity.