Course 12 of 20 · Coffee Desk Academy

Robusta Futures & Physical Hedging

Stage C, Basis, futures and currency. Level 6 of 10.

Hedging robusta positions on the robusta contract, including the cross-contract hedge choice and the relationship between the two exchanges.

117 chapters · 11 modules · every chapter one 8 to 10 minute explainer · builds on: Course 02, Course 10, Course 11

Enrol or enquire See the 117 chapters
How a chapter is delivered

One chapter is one idea taken to the point of use

Each chapter covers one idea to the point where you can use it, and comes two ways: a narrated explainer, and a deep dive audio discussion of around thirty minutes that works the same material at depth.

Self-paced throughout, and the same chapters can be taught as a cohort. Chapters run in order: each one assumes only what the chapters before it taught, and capability belonging to a later course is named and deferred rather than half-covered.

Curriculum

11 modules · 117 chapters

Open any module for its full chapter list, in teaching order.

M0 A Second Bean and a Second Contract Ch 1-10
  1. Why Robusta Cover Does Not Reduce to a Change of Ticker
  2. The Merchant Long of Unpriced Robusta Tonnes
  3. The Roaster Short of Robusta It Has Promised to Blend
  4. What the Arabica Hedging Course Is Assumed to Have Settled
  5. Two Venues, Two Rulebooks, One Position Report
  6. The Substitution Temptation, Stated Before It Is Judged
  7. The Gap Between the Two Beans as Somebody's Position
  8. The Physical Premium and the Desk That Trades It
  9. Where Funding, Currency and Stress Testing Are Taken Up
  10. From Deliverable Grade to Measured Residual: The Route Ahead
M1 The Robusta Contract Read Against the One Already Known Ch 11-21
  1. Reading a Live Specification Instead of Trusting a Remembered One
  2. The Unit of Trading on the Robusta Contract
  3. From Bags at Origin to Lots on the Robusta Board
  4. Why the Two Coffee Contracts Do Not List the Same Months
  5. Notice Day, Last Trading Day and the Robusta Expiry Clock
  6. How a Robusta Settlement Price Is Formed
  7. Tendering Robusta as a Genuine Exit for a Merchant
  8. The Delivery Choice Held by the Seller and Granted by the Buyer
  9. Certified Robusta Stock as Information and as Obligation
  10. Position Limits, Accountability Levels and a Book That Grows
  11. Clearing, Give-Ups and Reaching the London Robusta Market
M2 Deliverable Robusta: Growths, Grades and the Tender Ch 22-32
  1. The Contract's Grade Test Against the Cup Score Already Learned
  2. Screen Size and Defect Count in the Current Specification
  3. The Tenderable Growth List and Why It Is Revised
  4. Exchange Grade Differentials Are Administered, Not Quoted
  5. Washed Robusta Against a Contract Shaped Around Naturals
  6. Conilon From Brazil Beside Natural Robusta From Vietnam
  7. Moisture, Sieve Retention and the Risk of Rejection at Tender
  8. Grading at the Origin Warehouse and Grading at the Delivery Point
  9. The Lot That Cups Well and Still Fails the Specification
  10. Why Deliverability Changes the Hedge Before It Changes the Price
  11. Blending Economics as the Link Between Grade and Board
M3 Robusta's Own Supply Clock and Month Structure Ch 33-42
  1. The Vietnamese Harvest as a Date in the Hedging Diary
  2. A Second Supply Clock in Brazil and What It Does to Month Choice
  3. Robusta From Indonesia, Uganda and India in the Cover Set
  4. Origin Concentration and the Month Nobody Can Trade
  5. Certified Stock Drawdown and the Tightness a Short Position Feels
  6. Withheld Origin Selling and the Pull on the Physical Premium
  7. Harvest Pressure and the Shape of the Robusta Curve
  8. Why the Two Coffee Curves Need Not Invert Together
  9. Reading a Robusta Month Spread Before Choosing a Cover Month
  10. News That Moves One Coffee Contract and Leaves the Other Still
M4 Cover Against Robusta on Its Own Contract Ch 43-53
  1. Sizing Robusta Cover From a Tonne-Denominated Exposure
  2. Netting Robusta Purchases Against Robusta Sales First
  3. The Unpriced Balance a Robusta Trade Leaves Open
  4. Aligning Robusta Cover With the Pricing Window Actually Agreed
  5. Executing Robusta Cover in a Market With Fewer Participants
  6. Rolling the Robusta Leg on Robusta's Own Calendar
  7. A Robusta Position Tagged to the Parcel It Covers
  8. When Tendering Beats Buying Back a Robusta Short
  9. Cover Placed Before the Parcel Is Finally Weighed
  10. Over-Covered After a Robusta Shipment Short-Lands
  11. Covering Robusta Held for a Customer Who Has Not Committed
M5 The Two Exchanges Side by Side Ch 54-63
  1. One Bean Each: Why Coffee Trades on Two Separate Contracts
  2. Two Trading Sessions and the Hours When Only One Is Open
  3. Two Expiry Calendars Diarised on One Sheet
  4. Two Clearing Relationships and Two Pools of Margin
  5. Why Offsetting Positions May Not Offset in Margin
  6. Putting Both Coffee Boards on One Comparable Basis
  7. The Dollar Leg Both Coffee Boards Put on the Book
  8. Two Sets of Position Reporting Obligations
  9. Access, Brokerage and the Desk That Can Reach Only One Board
  10. Building One Position Statement From Two Coffee Boards
M6 The Arabica and Robusta Relationship as an Argument Ch 64-74
  1. The Claim a Cross-Contract Hedge Depends On, Stated Plainly
  2. The Substitution Argument and Its Assumptions
  3. The Case Against Relying on Co-Movement
  4. Why the Answer Depends on the Period Measured
  5. Measuring the Relationship Between the Two Coffee Boards
  6. Why a Measured Figure Is Evidence and Not an Instruction
  7. The Quality Tier Where the Relationship Weakens Most
  8. Supply Shocks on One Side Only
  9. Blend Reformulation at Scale
  10. The Quarter the Two Coffee Boards Moved Apart
  11. Early Signals That the Two Boards Have Stopped Agreeing
M7 The Cross-Contract Hedge Decision Ch 75-86
  1. When the Robusta Board Is Unavailable and a Decision Is Needed
  2. Covering Long Robusta With Short Arabica Futures
  3. The Difference the Cross Hedge Leaves You Holding
  4. Covering a Short Robusta Requirement With Long Arabica Futures
  5. Right Direction, Wrong Size
  6. The One-for-One Converted Hedge as a Deliberate Baseline
  7. Hedging Robusta on Arabica Across Two Expiry Calendars
  8. The Reverse Case: Arabica Covered on the Robusta Contract
  9. Three Tests Before Reaching for the Other Board
  10. A Cross Hedge With a Stated Expiry Date on the Decision
  11. Moving Live Cover From One Board to the Other
  12. The Cross Hedge Nobody Authorised
M8 Quantifying the Residual Ch 87-97
  1. Defining the Arabica Against Robusta Residual in Money per Tonne
  2. Assembling a History of the Converted Difference
  3. Repairing a Constructed Spread History Without Smoothing It
  4. Turning a Range of Differences Into a Figure the Desk Reports
  5. Scaling the Residual From One Parcel to a Season's Programme
  6. A Cross-Hedged Robusta Parcel Costed End to End
  7. Why the Cross Hedge Can Lose on Both Legs at Once
  8. Pricing the Retained Difference Into the Offer
  9. Capping Cross-Contract Exposure With a Stated Limit
  10. Separating Difference Risk From the Physical Premium
  11. The Residual Page a Coffee Risk Committee Can Act On
M9 Keeping a Two-Contract Book Honest Ch 98-107
  1. The Line Between Covering Robusta and Trading the Two Beans
  2. A Mandate That Says Which Board May Cover Which Bean
  3. Judging a Hedger Whose Cover Looked Wrong Afterwards
  4. Explaining a Robusta Hedge Loss to the People Funding It
  5. Pressure to Lift Robusta Cover During a Rally
  6. Two Contracts, Two Confirmations, One Reconciliation
  7. The Orphaned Arabica Leg After the Robusta Is Sold
  8. Handing Over a Two-Contract Coffee Book
  9. What the Accounting Treatment of a Cross Hedge Turns On
  10. Robusta Cover Inside Price-to-Be-Fixed Business
M10 A Robusta Book Covered End to End, and the Limits Ch 108-117
  1. The Worked Book, Part One: Reading the Robusta Exposure
  2. The Worked Book, Part Two: Offsets Before Any Order
  3. The Worked Book, Part Three: Which Tonnage Goes on Which Board
  4. The Worked Book, Part Four: A Quarter of Movement
  5. The Worked Book, Part Five: Two Rolls and a Transfer
  6. The Worked Book, Part Six: The Statement and What Is Still Carried
  7. The Simplifications This Material Used Deliberately
  8. What a Cross-Contract Coffee Hedge Cannot Do
  9. The Protection a Linear Robusta Hedge Will Not Give
  10. What a Covered Robusta Book Hands to Currency and Fixation

The brochure gives each of these 117 chapters a paragraph on what it covers and what you can do once you have worked through it.

This is course 12 of twenty

It stands alone, and it is also the entry point to the Coffee Desk Academy pathway.

Enrol or enquire See the whole pathway