Green Coffee (C Price)
The C price is the benchmark commodity price for Arabica green coffee, traded on the ICE Futures exchange in New York in USD per pound. A 60 kg bag converted: at $1.80/lb the bag costs about $238. Specialty coffees trade at premiums of $0.50-$5.00+ above C price. Price C fluctuates due to Brazilian weather, currency movements, and speculative trading - creating price volatility that affects smallholder farmers disproportionately. Direct trade relationships aim to decouple from C price volatility.
Background & Context
The C-market price per kilogram of green coffee (prix C par kilogramme) is the benchmark reference price for arabica coffee traded globally — derived from the Intercontinental Exchange (ICE) Coffee "C" futures contract, quoted in US cents per pound, and converted to dollars per kilogram for convenience. One US pound equals approximately 0.454 kg, so a C-market price of 200 US cents/lb (which prevailed in 2022) converts to approximately $4.40/kg. The C-market represents a commodity contract for generic washed Arabica, not any specific origin or quality level — specialty premiums (typically $0.50–10.00/kg above C-market depending on quality, certification, and relationship) are added on top of C-market reference for physical specialty lots. Coffee's C-market has historically ranged from a low of approximately $0.65/lb (2001–2002) to historic highs above $3.50/lb (2010–2011, 2021–2022) driven by Brazilian climate events.
Practical Use
Understanding C-market dynamics is essential for coffee pricing transparency and producer relationship management. When a roaster publishes the per-kilogram price paid to a producer (increasingly required by specialty consumers), the context — C-market price at time of purchase, plus differential — shows whether the premium was meaningful. In 2022, paying $3.50/kg to an Ethiopian producer when C-market was at $3.80/kg represented a below-market transaction; paying $5.50/kg when C-market was $2.00/kg was a meaningful 175% premium. Fair Trade's minimum floor ($1.80/lb ≈ $3.97/kg as of 2024) and specialty direct trade targets ($3.00–8.00/kg green) provide reference points for evaluating producer payment fairness in any market environment.
Related Terms
Related terms: C-market price, ICE exchange, Fair Trade, Direct trade, Specialty coffee.