Commodity Origins

Arabica

Arabica is the coffee species grown at higher altitudes that accounts for most of the world's premium coffee and the main futures contract traded in New York.

Arabica coffee trees generally need cooler temperatures and higher elevations than the alternative species, robusta, and they produce beans most drinkers consider smoother and more complex in flavor. Brazil and Colombia are the largest arabica producers, growing it across highland regions suited to the plant’s needs.

Because arabica costs more to grow and is prized for quality, it trades at a persistent premium to robusta, and the gap between the two, a differential that widens and narrows with relative supply, is itself a closely watched market signal. Arabica is the coffee behind the main futures contract traded in New York, while robusta trades on a separate contract, reflecting how differently the two beans are used and priced.

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