Coffee Glossary · Trade
Spot vs Forward Contracts
The trade's two buying modes: spot coffee sits landed in a destination warehouse, available immediately — inspect, pay, collect — at a premium for convenience and financed inventory; forward contracts book future shipments (often pre-harvest) at agreed terms, securing supply and letting roasters plan while sharing crop risk with the exporter. Healthy sourcing programs blend both: forwards for core volumes and relationships, spot for gaps, trials, and opportunistic finds on importer lists.
Related terms
Differentials (Price Basis)
How most coffee is priced: as a premium or discount ('differential') against the futures markets — New York's…
Incoterms (FOB, CIF, CFR, EXW, DDP)
The ICC's standardized trade terms defining exactly where seller responsibility ends and buyer responsibility…
Crop Year / Fresh Crop / Past Crop
Coffee's vintage system: each origin's harvest defines its crop year (Laos: roughly October–September), and…
Bill of Lading (B/L)
The ocean shipment's master document, issued by the carrier: simultaneously a receipt for the cargo, evidence…
Cash Against Documents (CAD)
A documentary collection payment method lighter than a letter of credit: the exporter ships, then routes the…
Cup of Excellence (CoE)
The most prestigious origin-country coffee competition: national juries winnow hundreds of farm entries…
Reading up before buying? Volcana Coffee exports SGS-inspected specialty Arabica and Fine Robusta from the Bolaven Plateau, Laos — and we're happy to walk new importers through every term on a real offer sheet.
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