Why do coffee prices fluctuate?
Coffee is a commodity that is traded on world stock exchanges and is subject to fluctuation as a result of demand. The expectation of a shortage due to poor crops or a surplus can have a dramatic effect on the coffee prices that all roasters pay. In addition to the base price for green coffee established on commodity markets, countries and individual farms assign a “differential” to their pricing which is determined by their coffee’s quality or rarity. The differential may be above or below the market green price.
