Coffee Topping Out?

Coffee Topping Out?

Traditional agricultural commodity markets have always been subject to supply disruptions. Think about the mid-west flooding of the mid 90’s, mad cow disease, Florida orange crop freezes as well as labor strikes and political coups. Almost two months ago, we talked about trading the coffee market. We noted that the two major growing regions both had weather related problems and that’s what was driving up the price. There’s one other primary reason for commodity market supply shocks and that is the lack of substitute goods.

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