Coffee Traders' Forum - A Discussion about Coffee Futures Trading
Coffee Traders Discussion Forum
I would disagree that there is too much coffee now.
Check the price of Arabica is below last year and also below 2015, right. There should be a lot of arabica in the market right?
Since 2015 or so, Dolce Gusto major PODS coffee seller in EU, start to advertise 100% arabica in their capsules.
Just recently they are back with the arabica + robusta mix, and it is beyond awful even for a quick drink..
Not mentioning about 10% increase in price.
I think if there was enough arabica for current low price actually available, they would not destroy the taste many got used to with robusta.
I am sure that current price is heavily manipulated by futures market makers, and the longs are correctly positioned for short term at least.
If there is indeed impact of insufficient rain in Brazil and excess of rain in Columbia, the price will by climbing further up thru 2018 and early 2019.
This naked shorting practice is destroying the fairness of the market, especially this physically pass-thru commodity market.
PS.. saying that winter is not coming because it is still relatively warm in Chicago, is a little bit strange. The impact on price is however a different story.
In EU many countries store natural gas in large artificial underground deposits from summer for use in winter, so there is almost no price impact by cold.