Marc Latamie – Trading Coffee Futures
A New York City artist for nearly 30 years, Marc Latamie selects installation, neons signs in his art. For several years, he has guest lectured at Columbia University, Cooper union School of Arts, and New York University on subjects such as Marcel Duchamp and Pablo Picasso.
While using various commodities in his art, coffee is an important component for his work.
Sold on the Intercontinental Exchange (ICE), coffee futures accounts for an important commodity. The most common type is the Coffee C contract, which represents Arabica coffee and consists of 37,500 pounds of coffee. Nineteen countries, including Mexico, Costa Rica, and Peru, produce Arabica coffee. After delivery, experts test the bean for quality and flavor. Inferior coffees are sold at a discount, while better beans receive a premium price. Presently, Columbia acquires the highest premium at 200 points, and Brazil ranks at the lowest end with a 900 point discount.
On May 12, 2014, ICE announced that coffee futures hit a five-week low. Arabica coffee dropped to $1.8445 a pound that morning following a 26-month high at $2.1892 on April 23. Brazil’s weather accounts for a major reason behind the fluctuations. The world’s biggest producer and exporter of Arabica coffee, Brazil faces a drought that could severely affect crops throughout the nation.