The price of basic coffee as a commodity trades on the C Market which has risen about 70% since its' recent low point in December of last year. Traditionally the C market price can bounce like a beech ball every time Joun Valdez gets a cold, but this one looks to stick at least for the next few months. Brazil has suffered unusually dry weather this growing season which is expected to effect production of the worlds largest coffee producing Country. Coffee prices had been falling the past two years to a point below which many Growers could survive in spite of growing demand for coffee. At this point it looks like the anticipated possibly reduced production has merely brought a long needed price correction that hopefully will last long enough to benefit the Folks who grow the coffee we all love. For our part we may see increases in retail prices of coffee as Retailers (like me) replenish their stocks but it is far too early to be overly concerned.
Scott Brill
Author