Coffee is one of the most volatile commodities and JO reflected as much in 2019 with plenty of supporting evidence in recent weeks. JO is lower by almost 3% over the past week but maintains a December gain of 12.50%. That has the coffee ETN higher by almost 12% year-to-date.
“Coffee’s stunning rally in late 2019 took many traders and analysts by surprise, creating tension over where prices go from here,” reports Bloomberg. “Arabica beans have surged 28% since the end of September, on pace for the best quarterly performance since 2014 and the biggest gain among major commodities in the last three months. The move came after futures in May tumbled to the lowest in 13 years, driving some farmers out of the industry.”