Risks related to commodity price volatility are a major thread to actors in commodity chains,
particularly to smallholder farmers in low income countries. Therefore, price setting and
transmission within global commodity chains are of crucial importance from a developmental
and distributional perspective. With the end of global price stabilization mechanisms in the
1980s, financial derivative markets have taken over the central role in price discovery and
risk management. This is also true for the case of coffee, being the agro-commodity with the …