Coffee prices getting to high grounds

In recent weeks coffee prices have risen to over 165, from a previous trading range averaging 130.
Many analysts are quick to come back to the same rhetoric of low supply… claiming that prices will continue to go up dramatically.

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Our international network of growers think differently.

Are the analysts wrong?

We are in ongoing contact with over 40 nations which grow coffee & can confirm that harvests have been excellent with high volumes & standard qualities.

What we also see is a concerning sentiment at the commodity exchange when analysing financial derivatives related to other commodities & US bonds.

We have received information from our traders on the ground noting that investors would rather take a safe position in soft commodities, such as coffee, during this unstable period of the US economy & European uncertainty.

ICT continues to work directly with farmers making sure that raw coffee supply continues to flow adequately maintaining averages in prices.

From our perspective we see a steady flow of coffees of high qualities which should ensure a steady level in prices for the near future.

We can also understand the current spike as a financial/technical phenomena & not so much as a rise resulting from fundamentals.

We remain committed to all our customers, suppliers & shareholders to maintain steady supply making sure that qualities in the cup remain consistent & unique.

Contact ICT for more information!