KEY TAKEAWAYS
- Coffee futures have climbed nearly 77% in 2024 and are trading just below their all-time high of $3.39 set in 1977.
- The current uptrend in coffee futures pries began in October 2023.
- To take advantage of the coffee rally, you may want to buy certain stocks—something you can do in any of the best investment apps—and you also might want to buy futures or exchange-traded commodities, which can also be accessed using some of the 澳洲幸运5官方开奖结果体彩网:best brokerage accounts.
Coffee futures prices—the chief indicator of coffee’s price—are trending up and threatening to crack their highest point, set in 1977, as measured by the price of Arabica beans, which are the benchmark for coffee futures contracts that trade on the Intercontinental Exchange (ICE). After Arabica beans peaked around $3.30 per pound in late November, they are still trading around $3.00, prompting many investors to wonder just how they can participate in the rally. In fact, the Arabica beans uptrend began in October of last year. And so far this year, Arabica futures price has climbed nearly 77%.
Now, the good news is that there are multiple ways to play the rally, such as using popular 澳洲幸运5官方开奖结果体彩网:online brokers, 澳洲幸运5官方开奖结果体彩网:investment apps, and futures trading platforms—such as —to buy coffee-related exchange-traded commodities (ETCs), futures. You can also use many 澳洲幸运5官方开奖结果体彩网💦:standal♛one and broker-based screeners to look for stocks th🐽at fit with traits you like.
Here’s How to Invest in Coffee Right Now
The run-up in coffee prices stems largely from concerns about U.S. dollar weakness, adverse weather hurting output in top producer Brazil, and a delayed harvest in big producer Vietnam.
There are several ways you can try to profit from coffee’s price increase. You can do it by using 澳洲幸运5官方开奖结果体彩网:top online brokerage and 澳洲幸运5官方开奖结果体彩网:investment apps to invest in the stocks of companies that sell𝐆 coffee to consumer💟s on a retail or wholesale basis. You can also buy and sell stock in companies that run coffee shops or that deal in coffee merchandise such as home coffee makers.
If you don’t mind risk and are willing to take it on for the sake of potentially boosting your r꧂eturns, you can pursue the third avenue of coffee investing—investing in coffee futures.
To gain more direct exposure to the underlying commodity itself, you can invest in coffee-related ETCs, which are 澳洲幸运5官方开奖结果体彩网:exchange-traded products that provide an alternative to trading futures by giving investors the opportunity to invest in an individual or a b🐠asket of commodities.
As with any investment decision, you 🍎should choose the investment method that meets your long-term needs and goals.
Compare Investopedia’s Best Trading Platforms for Investing 🧸in Coffee
Platform | Account Minimum | Available Futures Trading | Access to International Exchanges |
$0 | Yes | Yes | |
$400 | Yes | No | |
$0 | Yes | No | |
$0 | Yes | Not Disclosed | |
$0 | Yes | Yes |
Coffee ETFs and ETCs
ETFs were easily available in the U.S. until mid-2023 when the last of them ceased to be offered to U.S. investors. U.S. investors can still access their debt-based relatives, 澳洲幸运5官方开奖结果体彩网:exchange-traded commodities (ETCs), which are provided by the London Stock Exchange andꦡ sold internationally.
ETCs typically hold commodities in the form of futures contrജacts. But U.S. investors only have access to these instruments through a limited number of U.S. brokerages that offer access to a large number of international securities, such as .
Here are the only five coffee-themed ETFs wit🍃h “coffee” in their names in the Morningstar Direct database:
SG ETC Coffee Future
- Ticker: 42G1
- Sold in: Austria, Germany, Denmark, Spain, Finland, France, Ireland, Italy, Luxembourg, Netherlands, Norway, and Sweden
WisdomTree Coffee - EUR Daily Hedged ETC
- Ticker: ECOF
- Sold in: Austria, Germany, Denmark, Spain, Finland, France, Ireland, Italy, Luxembourg, Netherlands, Norway, and Sweden
Wisdom Tree Coffee ETC
- Ticker: COFF
- Sold in: Austria, Belgium, Germany, Denmark, Spain, Finland, France, United Kingdom, Ireland, Italy, Luxembourg, Netherlands, Norway, and;Sweden
WisdomTree Coffee 2x Daily Leveraged ETC
- Ticker: LCFE
- Sold in: Austria, Belgium, Germany, Denmark, Spain, Finland, France, United Kingdom, Ireland, Italy, Luxembourg, Netherlands, Norway, and;Sweden
WisdomTree Coffee 3x Daily Leveraged ETC
- Ticker: 3CFL
- Sold in: Austria, Belgium, Germany, Denmark, Spain, Finland, France, United Kingdom, Ireland, Italy, Luxembourg, Netherlands, Norway, and Sweden
Coffee Futures
Coffee futures are bets on the future price of coffee. That😼 price depends on supply and demand for coffee. For producers and roasters, futures are tools for managing financial risk, for one thing. For instance, coffee producers can sell futures to lock in a fixed price.
Each contract is for 37,500 pounds of coffee. Coffee futures are traded on the 澳洲幸运5官方开奖结果体彩网:Intercontinental Exchange (ICE), a commodity excha𒆙nge. To trade coffee futures, you need a brokerage account that gives you access to ICE cont🅺racts.
The Coffeeꦡ C contract—whose trading symbol is KC—is the world benchmark for Arabica coffee, according to ICE. Each coffee contract refers to a set amount of Arabica beans to be delivered at a future date at a preset price.
Coffee Stocks
Investing in coffee stocks can be complex, since the industry has many layers. It consists of companies that operate in either the 澳洲幸运5官方开奖结果体彩网:consumer discretionary and 澳洲幸运5官方开奖结果体彩网:consumer staples se♒ctors, as producers, distributors, processors, wholesalers, a🌠nd retailers.
🎃 Here are four stocks whose stocks have been trending higher along with the rise in coffee futures prices i💎n recent weeks:
Dutch Bros Inc. (BROS)
- Share price performance: Up more than 85% since August 12, 2024
- Outlook: Michael Kodari, CEO of KOSEC Securities in Sydney, Australia, said, “Dutch Bros has benefited from secular liquidity rotation into mid-caps, driving its recent rally. Its ability to scale through franchising provides a cushion against rising coffee commodity costs, but the impact on margins may still surface in future earnings reports. For now, the market perceives it as free of margin pressures, which supports the current uptrend.”
Laird Superfood Inc. (LSF)
- Share price performance: up 123% since February 23, 2024
- Outlook: Kodari said, “Laird Superfood's sharp rise appears more tied to broader small-cap inflows than coffee prices directly. While the company markets coffee-adjacent products, it operates in the broader health food space, which insulates it somewhat from rising commodity costs. Its growth trajectory hinges on demand for premium wellness products rather than coffee-specific tailwinds.”
Coffee Holding Co., Inc. (JVA)
- Share price performance: up 220% since June 10, 2024
- Outlook: Kodari said, “JVA’s 220% surge is likely driven by speculative interest and the belief that, as a wholesaler, it can manage rising coffee costs more effectively than retailers. However, this is a risky proposition. Wholesalers face slim margins, and sustained high coffee prices could compress profitability over time. The market is optimistic now, but execution risks remain.”
Starbucks Corp. (SBUX)
- Share price performance: up 37% since July 10, 2024
- Outlook: “Starbucks is uniquely positioned to weather rising coffee costs due to its substantial pricing power and deeply loyal customer base, which allows it to pass through nominal price increases without significant attrition. For a company like Starbucks, raising prices by even a few percentage points [have] minimal impact on consumer behavior but [generate] substantial margin preservation at scale. Unlike smaller competitors who face customer pushback or attrition from price sensitivity, Starbucks leverages its premium brand equity and global scale to maintain profitability.” Kodari said.
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