Coffee has been in the dumps for over a year. I heard on NPR that there is a drought in India where they grow coffee and the crop may be reduced. This might be robusta. ICE has a robusta future. I'm checking to see what the CME contract uses.

Robusta is real crap coffee, the stuff they put in flavored. Coffee snobs should only drink Arabica.

Speaking of which, I bought some KIVA Northwest roasters Columbian coffee for $9/lb. It was smooth and delicious. A much better value than Kona coffee for close to $40 or $50 /lb. But Kona coffee is the only US sourced coffee and I grow it on my farm.





Speak your mind

1 Comment so far

  1. anand on May 2, 2016 7:19 pm

    you wouldn’t want to drink a pure Arabica coffee, it doesn’t have the body and perhaps more importantly the caffeine content that Robusta does. Therefore a blend is used. However, as you’d imagine when coffee blenders want to cut costs (which they always do) they substitute cheap robusta for Arabica .. which is why all coffee shop coffee tastes rough and keeps you buzzing half the night!

    I used to trade this stuff on fundamentals (i.e. weather/crop reports and so on) but its perilous, one rogue weather report or some piece of news from Brazil etc. can put you offside very quickly. Its also a terribly small and incestuous market where the big coffee buyers / traders act in concert and all talk to each other which means as a small speculator such as myself you are operating in the dark much of the time and constantly are conspired against by the few big players (its an oligopoly) along with their propaganda machinery in the soft commodity news business who repeat lines from the aforementioned.


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