Coffee futures expected to climb at least 20 to 30 %
“Coffee futures are currently trading for just over $100,” said Kevin Kerr, a commodities trading veteran, “and we expect those prices to climb at least 20 to 30 percent.” Arabica coffee beans, which account for two-thirds of the world”s coffee supply, are positioned to become one the upcoming season”s best investments
ASSESSMENT cialis without prescription interpersonal factors such as relationship distress, sexual.
. Current global droughts, heavy retailer hedging, and inevitable colder temperatures have inspired many experienced investors to buy up coffee options and futures contracts . Kevin Kerr, who discussed the rise in coffee prices this morning on “Report on Business Television,” believes that coffee could quickly become a high yield investment. “Foul weather in a few lesser known growing countries like Brazil and Vietnam are triggering a sudden price spike.” While these locales draw far less attention than famous South American growers, a dry season could bring global prices to a boiling point. “Coffee prices were already weary before growers announced a weak forecast,” said Kerr, who is the editor of the commodities trading newsletter Resource Trader Alert. The Robusta coffee bean, a more expensive variety traded in London, recently hit a seven-year high early last month. In turn, many of the world”s largest coffee buyers such as Proctor and Gamble, Kraft, and Folgers, have been buying massive amounts of Arabica beans in hopes to hedge themselves against a seemingly inevitable price hike. “On top of all the bad weather and insider buying,” said Kerr, “temperature drops in the fall and winter almost always trigger about a 12% demand increase for coffee.” The ongoing success of coffee retailers around the U.S., even through an astoundingly hot summer, signals little restraint on behalf of typical coffee consumers. “With all of these factors added together,” said Kerr, “there is a real opportunity to buy coffee at current levels.”
Source: http://www.dailyreckoning.com
