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Coffee Glossary

A comprehensive guide to 33 essential terms used in coffee trading, production, and evaluation.

33terms • sorted A to Z

Arabica

Coffee belonging to the Coffea arabica species. Accounts for 60-70% of global production. Grown at high altitudes with a complex flavor profile. Contains less caffeine (1.2-1.5%).

Backwardation

A market condition where futures contract prices are lower than the spot price. Signals supply shortages or strong immediate demand.

Blend

Coffee mixed from multiple origins or varieties. Used to create a consistent flavor profile.

C-Market

The Arabica coffee futures contract (Coffee C Futures) traded on ICE New York. The benchmark for global Arabica prices.

Cupping

A standardized tasting method for evaluating coffee quality. Conducted according to SCA protocol: scores are given for aroma, flavor, acidity, body, and balance.

Cherry

The fruit of the coffee plant. Typically contains two seeds (beans) inside. Peaberries contain only one seed.

CIF

Cost, Insurance and Freight. The seller quotes a price including freight and insurance. A widely used Incoterm in commodity trading.

COT Report

Commitment of Traders. A weekly report published by the CFTC. Shows speculative and commercial positions.

Contango

A market condition where futures contract prices are higher than the spot price. Reflects storage and financing costs under normal market conditions.

Bag

A unit of measurement for coffee. Standard bag: Arabica 60 kg, Robusta (Vietnam) 60 kg. In Brazil, 69 kg bags are sometimes used.

Defect

Flaws in green coffee beans. Includes insect damage, mold, breakage, and fermented beans. Defect count determines quality in SCA grading.

Differential

The premium (+) or discount (-) applied relative to the C-Market price. Determined by origin, quality, and certification status. Example: Colombia Supremo +15 cents/lb.

Screen Size

A measure of bean size. Expressed in 1/64 inch increments. Example: S18 = 18/64 inch. Larger beans generally command higher prices.

FOB

Free on Board. The seller loads the goods onto the vessel; all costs and risks thereafter belong to the buyer. The most commonly used Incoterm in coffee trading.

Futures

A standardized contract for the delivery of a specific commodity at a predetermined price and date. Traded on the ICE exchange.

Green Coffee

Unroasted coffee beans. Coffee is traded internationally in its green state. When properly stored, it maintains quality for up to 12 months.

Hedging

A strategy for managing price risk. Producers or buyers take an opposite position in the futures market to offset the risk of their physical coffee transactions.

Honey Process

A coffee processing method. The cherry is depulped but dried with the mucilage layer intact. Produces a flavor profile between washed and natural.

ICE

Intercontinental Exchange. The exchange where coffee futures contracts are traded. Has New York (Arabica) and London (Robusta) sections.

ICO

International Coffee Organization. An intergovernmental body whose members include both producing and consuming countries.

Lot

The exchange contract unit. Arabica: 1 lot = 37,500 pounds (approximately 17 tonnes). Robusta: 1 lot = 10 tonnes.

Margin

The deposit required to open a futures contract. Typically ranges between 5-15% of the contract value.

Natural Process

A coffee processing method. The whole cherry is dried in the sun. Produces intense fruit sweetness and a full body.

Parchment

A thin membrane surrounding the coffee bean. After washing, the bean is dried inside its parchment layer. Removed in the final stage (hulling).

Peaberry

A single bean formation inside the cherry (normal: 2 beans). Considered to have a more intense flavor profile. Accounts for 5-10% of the total harvest.

Q-Grader

A professional coffee evaluator certified by the Coffee Quality Institute (CQI). Separate licenses exist for Q Arabica and Q Robusta.

Robusta

Coffee belonging to the Coffea canephora species. Grows at lower altitudes and contains more caffeine (2.2-2.7%). Widely used in instant coffee and espresso blends.

SCA Score

The Specialty Coffee Association grading system. Scored out of 100. 80+ points: specialty coffee. 85+: excellent. 90+: outstanding.

Silverskin

The thinnest membrane surrounding the coffee bean. Separates during roasting and floats off as chaff.

Specialty Coffee

Coffee scoring 80+ points according to SCA standards. Traceable origin, minimal defects, and a distinctive flavor profile.

Spot Price

The price for immediate delivery of a commodity. May differ from the futures price (contango or backwardation).

Spread

The price difference between two different futures contract maturities. Reflects market conditions and expectations.

Washed Process

A coffee processing method. The cherry is depulped, mucilage is removed through fermentation, and the beans are washed with water. Produces a clean, acidic, terroir-focused cup profile.