What is the C coffee futures market?

The Coffee C (ICE Futures) is the benchmark futures contract for Arabica coffee on the Intercontinental Exchange in New York. Its price, expressed in US cents per pound of green coffee, is the base on which almost all global commercial coffee prices are built. A C market rise directly impacts the price paid by roasters — and, downstream, the price paid by consumers.

The Coffee C, whose official ticker is 'KC', is one of the most liquid futures contracts in global agricultural markets. It is listed on ICE Futures U.S. (Intercontinental Exchange) in New York and covers standardised deliveries of green Arabica coffee — lots of 37,500 pounds (around 17 tonnes), with strict minimum grade requirements.

The Coffee C contract dates from 1882, making it one of the oldest agricultural futures markets in the world. Originally, it served to protect traders and roasters against price fluctuations — a hedge against price risk. Today, the market is dominated by speculative funds and financial traders who often have no connection to the coffee industry: they buy and sell contracts to profit from volatility, without ever taking physical delivery of a single bean.

This financialisation of the market has profound consequences for the supply chain. When funds heavily positioned long on the C market suddenly exit (short covering or portfolio rebalancing), the price can fall 20-40% within weeks without any real change in supply and demand conditions. These violent swings make economic planning very difficult for producers, who operate on 3-to-5-year production cycles.

For specialty coffee, the relationship with the C market is ambivalent. On one hand, direct trade or fixed-price purchases allow buyers to bypass fluctuations — the price is negotiated one or more crop years in advance. On the other, even for specialties, the C market serves as a psychological and economic floor below which few sellers want to go, which partially protects producers during downward phases.

An important contextual note for 2025-2026: the C market saw a spectacular rise since 2023, peaking near 340-350 cts/lb — historical records — driven by the combined effects of Brazilian frosts, Vietnamese droughts (affecting Robusta, thus overall supply) and sustained global demand. This rise is progressively flowing through to retail prices across all market segments.

Coffee C contract specifications (ICE Futures)