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.
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.