Coffee Price Falls as Roasters Fail to Buy
Earlier this month coffee reached its highest level since April of 207.95. However, the last week has seen a drop in price down to below 190.00. The fall in price came as well-stocked roasters failed to follow through with buying, despite a fall in this year’s Brazilian crop and concerns over next year’s harvest.
Roasters are thought to be well stocked thanks to bumper harvests over the past couple of years. Furthermore, Brazilian export figures from the beginning of the week show that beans are still being sold despite the damage to the crop.
However, while roasters may be well stocked at the moment, it is likely that supplies may become scarce in the coming year. As a result it is worth taking a long position as the price is likely to become significantly higher at some point next year.