In this episode, Mark Inman and Todd Mackey delve into essential coffee terminology, exploring terms like FOB, coffee stripping, buying forward, and more. They aim to demystify industry jargon for newcomers and provide insights into the complexities of coffee trading and logistics. The conversation highlights the importance of understanding these terms for anyone involved in the coffee industry, from roasters to buyers.
00:00 Introduction to Coffee Terminology
02:50 Understanding FOB and Its Importance
05:57 The Process of Coffee Stripping
09:05 Buying Forward: Securing Future Inventory
12:02 Defining Your Coffee Position
15:06 Delivery Orders and Their Role
17:49 Understanding NANS and Its Implications
21:10 Grain Pro: Enhancing Coffee Quality
23:56 The Role of the Green Coffee Association
27:12 Hedging: Managing Risk in Coffee Trading
27:54 Understanding Hedging in Coffee Trading
30:17 The Importance of Allocation
33:38 Counterparty Dynamics in Coffee Transactions
35:51 Differentials: A Unique Pricing Strategy
38:32 Long and Short Positions Explained
41:52 The Concept of Lots in Coffee Trading
46:32 Understanding Carry Charges
49:52 Unit of Measure: The Basics of Coffee Pricing