Confusion and uncertainty are the watchwords in the coffee market right now. At least that’s apparently the case based on the lack of a consensus on how COVID-19 will affect bean prices. I’ll make the case here, however, that while prices might remain directionless in the near term, coffee’s intermediate-term (3-6 month) outlook is bullish based on currency-related factors.
If there’s one thing that is certain in the industry right now, it’s that no one is certain how the global pandemic will ultimately impact the java market. Read through the latest commentaries and industry forecasts and you’ll likely come away scratching your head, wondering in amazement at the diversity of opinions and lack of clarity surrounding the intermediate-term market outlook. Such is not normally the case in this particular market, but these aren’t normal times.