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Showing posts from October 23, 2010

Coffee futures outpacing cash prices, finally

Caffeinated Coffee Futures Cash prices have outpaced futures gains in recent years. That situation is starting to change as stockpiles dwindle. Link : DJ-AIG Commodity Indexes By Anna Raff The Wall Street Journal October 23, 2010 AFTER YEARS OF SHRUGGING off the global shortage of quality beans, coffee futures are finally perking up, a change from recent years. Back in 2008, Colombia had one of its worst harvests in decades, prices on the cash market were surging, but futures mysteriously fell. Earlier this month it was revealed that there were worries about the quality of coffee stored in exchange-certified inventories. These concerns emerged during a disagreement about the inclusion of Brazil into the club of countries whose beans can be accepted into the stockpiles. No one—meaning no roasters, the natural buyers of green, or raw, coffee—wanted to take delivery of the coffee in stockpiles, market participants say, and it's this aversion that led to the distortion in ...