How much coffee does a Coffee Futures Contract Control in real terms?

If you’ve ever wondered how many Venti-sized cups of coffee can be produced from a coffee futures contract, you’re in the right place. In this blog post, we’ll dive deep into the world of coffee futures and answer that very question. So, sit back, grab a cup of your favorite brew, and let’s get started!

What is a Coffee Futures Contract?

Before we go any further, it’s essential to understand what a coffee futures contract is. In essence, a coffee futures contract represents an agreement to buy or sell a fixed amount of coffee beans at a predetermined price on a specific date in the future. These contracts are traded on the New York Mercantile Exchange (NYMEX) exchange.

A single coffee futures contract represents 37,500 pounds of green coffee beans. Green coffee beans are coffee beans that have not yet been roasted, and as such, the weight of these beans will decrease after roasting.

The Roasting Process and Its Impact on Green Coffee Beans

The roasting process profoundly affects a coffee bean’s taste and weight. As a general rule of thumb, the weight of green coffee beans will decrease by approximately 18% during roasting due to the loss of moisture and other compounds.

This means that you’ll be left with about 82% of the initial green coffee bean weight after roasting in the case of a single coffee futures contract, which translates to roughly 30,750 pounds of roasted coffee beans.

Venti-Sized Cups and Coffee Ground Requirements

Now that we have our roasted coffee beans let’s talk about making a Venti-sized cup of Starbucks coffee. A Venti-sized cup typically contains 20 ounces of brewed coffee, which requires between 0.32 and 0.35 ounces of coffee grounds per 8 ounces of water. However, this requirement can vary depending on factors such as the brewing method, coffee type, and strength of the coffee.

Let’s use 0.34 ounces of coffee grounds per 8 ounces of water as our standard measurement for simplicity. We’ll need approximately 0.85 ounces of coffee grounds to make a 20-ounce Venti-sized cup.

The Grand Reveal: How Many Venti-Sized Coffees from a Coffee Futures Contract?

Using the roasted coffee bean weight derived from a single coffee futures contract (30,750 pounds) and the requirement of 0.85 ounces of coffee grounds for a Venti-sized cup, we can now confidently calculate the number of Venti-sized cups of coffee that can be produced:

30,750 pounds of roasted coffee = 492,000 ounces (1 pound = 16 ounces)

492,000 ounces ÷ 0.85 ounces per Venti-sized cup ≈ 578,824 Venti-sized cups of coffee

And that’s it! A single coffee futures contract is enough to produce an astonishing 578,824 Venti-sized cups of coffee. That’s enough caffeine to keep a whole town awake for days!

Now you can impress your friends with your newfound knowledge of coffee futures contracts and how they translate to your favorite Venti-sized brew.