Coffee Hits 12 Year High

Food Inflation is slowly hitting every good you buy, which is why you should be stocking up on things that can be stored like coffee:

Coffee prices extended gains in New York, surging to the highest level in more than 12 years, on concern that output in South America will be limited.

Coffee climbed 6.1 percent last week on speculation that too much rain will hurt crops in Brazil and Colombia, the world’s largest producers of arabica beans. Speculative long positions, or bets prices will rise, outnumbered short positions by 42,616 contracts on ICE Futures U.S. in the week ended Aug. 10, according to government data.

“The short-term supply concerns remain,” said Hector Galvan, a senior trading adviser at RJO Futures in Chicago. “There is a lot of speculative buying.”

The speculation which is exacerbating the rise in food prices is being driven by the uncertainty in the market and the inability of investors to make profits in other sectors.

One thought on “Coffee Hits 12 Year High

  1. Pingback: Bi-Lo’s Announced “Five Year Plan” Stolen Directly From Stalin : Greenville Dragnet

Comments are closed.