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  • Coffee price hits 13-year high

    Coffee price hits 13-year high

    Seems to refer more to the US market but will probably have impact here as well if futures trading in coffee sets world prices, which I think it does. Perhaps Andy can elaborate.

    Coffee prices hit a 13-year high on Wednesday, extending a rally that has sent prices up about 43 per cent in the past three months.

    Coffee for December delivery settled up 2.25 US cents at $US1.9455 a pound on Wednesday after hitting $US1.9865 per pound earlier in the day.

    Trading volume was light, which can exaggerate price movements.

    <snip>

  • #2
    Re: Coffee price hits 13-year high

    "Trading volume was light, which can exaggerate price movements.


    This weeks rally appears to be largely due to speculative trading because fears have eased about weather and supply issues......."

    time to go short ?

    futures are often manipulated by the big traders to cover positions for expiring contracts they already hold.

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    • #3
      Re: Coffee price hits 13-year high

      Originally posted by 5559505D5D54380 link=1283983886/1#1 date=1283987692
      time to go short ?
      Sounds reasonable to me, after every boom there is a bust.

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      • #4
        Re: Coffee price hits 13-year high

        "Today Tonight" Friday September 17th featured an item titled "Coffee Prices On The Rise" .
        Some familiar faces in the footage including Steve Agi, Gwilym and Will. The video is now for viewing on Today Tonight Video Archives. We would love to know where Gwilym is working.
        Do cafes get roasted beans for $20 a kg? as quoted, and make the big profits mentioned?

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        • #5
          Re: Coffee price hits 13-year high

          Originally posted by 4E4354444F43260 link=1283983886/3#3 date=1284721603
           and make the big profits mentioned?
          Stats can demonstrate what ever you want..

          Work it out ya self.. Plenty of spreadsheets that are available..

          Coffee = ?
          Cups = ?
          Milk = ?
          etc = ?
          etc = ?

          And the list goes on ...  They mentioned the first three, then there is equipment , location, wages etc etc etc and then their massive profit margin is not so great..

          Many people often forget the wages / labour and then work it out on two or three hrs of peek time... You still have to cover the wages for that time when there is no one demanding coffee...

          Is there money to be made... YEP otherwise no one would be doing it....  Are the margins getting tighter YEP.

          Then ya start to roast to drop ya cost of ya main raw ingredient... save $10 a Kg after gas and electricity and bags etc etc.. Still a lot of roasting to make back that $12K plus you just spent on the little baby roaster :-)  

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          • #6
            Re: Coffee price hits 13-year high

            A 1990 survey in Sydney & Melbourne revealed an average coffee price of $2.65.  The same survey in 2008 came up with $3.10.  An increase of just 45 cents in eighteen years.  If the retail price of a cup of coffee had moved with the CPI over that period it would be $6.50.  Increased coffee volumes explain the ability of cafes to keep prices down - but margins have been squeezed.

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            • #7
              Re: Coffee price hits 13-year high

              Originally posted by 6B455C4C7661465C5A4C290 link=1283983886/5#5 date=1284759143
              Increased coffee volumes explain the ability of cafes to keep prices down - but margins have been squeezed.  
              Or margins were high in 1990 and normal now.

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              • #8
                Re: Coffee price hits 13-year high

                I paid too much for a coffee last Sunday. $4.30 for what was ordered as a macchiato, at a resort amongst the grape vines in the Hunter Valley.

                It didnt resemble a mac. It was over extracted and very milky, more like a very ordinary latte. It was the last coffee I had there in 4 days. I drank red wine, beer and tea.

                I scored it 1 out of 10 as it did have some form of coffee in it.

                I find that it is often a risk when having coffee away from home, especially in the country.

                Barry

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