The Brazilian Real Weighs On Coffee Prices

From: seekingalpha.com

Coffee consumers around the world have been cheering because in September 2018 the price of coffee beans fell to their lowest level in many years at 92 cents per pound. After a brief recovery that took the price of the Arabica beans favored by US consumers back to $1.255 in October, the price turned lower again and is back below the $1 per pound level.

Coffee may not be the most elastic commodity when it comes to prices, and consumers are not likely to guzzle more java at low price levels, coffee can be as fickle as the weather, sudden crop diseases, and Brazilian politics. With the price of coffee close to recent lows and at what is likely near the bottom end of its pricing cycle, the soft commodity could be providing investors and traders with another opportunity to purchase coffee before its price begins to percolate on the upside.

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