kocurekc
Long

Coffee KC1!

ICEUSA:KC1!   Coffee
44 3 0
Finally, your cup of Joe may start getting cheaper (in 6 more months), commodity prices set the current contracts which usually don't arrive for 3 to 6 months. Maybe time to start locking in for 2015
Olu
2 years ago
I dont understand what you mean but I am on the same page with you if you are looking for a bottom soon and a move that should carry past 225
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kocurekc Olu
2 years ago
If your a big boy coffee company (Dunkin, Starbucks, etc), you have to buy your coffee months in advance. Sometimes even before it is picked (sometime with long-term farm contracts). Then the beans are picked, hulled, dried, and shipped from a far away land.
http://www.g-wie-gastro.de/images/kaffeeanbaugebiete.jpg

Those beans are then placed into inventory, test roasted and then processed. So the coffee you drink today, is typically from beans which were picked at least 6 months ago (with contracts which are 9 months old). So there is a pretty good lag (for instance, today beans are probably from April '14 contracts). However, these coffee guys are probably 'ok' business men. So, just like the gas/fuel, they are quick to raise there prices and slow to lower them,
http://finance.yahoo.com/news/dunkin-donuts-franchisees-forced-raise-180500310.html
http://www.forbes.com/sites/greatspeculations/2014/07/03/starbucks-raises-coffee-prices-boost-to-margins-and-revenue-growth/
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Olu kocurekc
2 years ago
I get it now. Thanks
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