logo
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

Coffee Prices Continue Decline

By  +Follow September 17, 2013 10:04AM
Share:
Tickers Mentioned:

The price of coffee continued its two-year slump today, with iPath Pure Beta Coffee ETN (CAFE) off almost 4 percent and iPath DJ-UBS Coffee Subindex Total Return SM Index ETN ($JO) down over 3.5 percent. The down day for coffee is part of a clear trend, with both ETFs having lost about 40 percent of their value over the last 12 months and about 70 percent from since April of 2011 when coffee prices peaked at $3 a pound, a 34-year high.

Some of this decline may be due to the continued rise in the use of the cheaper, easier-to-produce Robusta beans instead of the pricier, higher-quality Arabica beans across global markets. This year also saw large yields from Brazil, the world’s leading Arabica producer, who had a record year that helped to push prices to record lows. 

"[There] is a lot of supply out there," said Mark Smucker, president of US retail coffee operations for The J.M. Smucker Company (SJM) , the company behind Folgers Coffee, in August. "And the forecast for the next crop is also large. So that is what I think is driving the arabica market from a fundamentals perspective."

Further decline in production in Vietnam

While Vietnam’s emergence as a major coffee producer has been a major driver of falling prices, recent news would indicate that this year’s crop has declined off of last year’s levels according to the country’s customs department. Vietnam, the world’s top producer of Robusta beans, reported that production in August was 83,700 tonnes (1.39 million), down 18.5 percent year over year. It also puts the country’s January-August production at 968,400 tonnes, a 23.7 percent decline.

Kenya bucks the trend

While global prices continue to fall, news out of Kenya today showed the price of their coffee is on the rise. Kenya remains a small grower, but their high-quality beans are highly prized for their quality and often blended with beans from other countries by roasters. Reports from the Nairobi Coffee Exchange (NCE) on Tuesday had the top price for benchmark AA coffee grade up to $372 for a 50-kg bag, up from $324 just last week.

Results for CAFE
Stockaholics
23 Apr 14 22:33:13
After 4,000% gains on picks so far in 2014, our Alert on $QASP is On the Move! Big News: http://t.co/KYyg9e2V2z $CAFE $GSG $RJI
Stockaholics
23 Apr 14 19:26:50
After 4,000% gains on picks so far in 2014, our Alert on $QASP is On the Move! Big News: http://t.co/KYyg9e2V2z $CAFE $GSG $RJI
Stockaholics
23 Apr 14 15:56:31
Platinum Members saw 2,100% gains On Penny Stocks in one month! Sign up to Platinum Here: http://t.co/f22do3oXMo $CAFE $GSG $RJI
Stockaholics
23 Apr 14 10:38:34
Members saw 5,000% gains on Penny Stock Alert's in 4 months! Subscribe Today: http://t.co/5B5saivZk0 $CAFE $GSG $RJI
Petko Bankoff
23 Apr 14 09:57:58
RT @Hedgeye: #Coffee Prices Go Gangbusters, #Fed Says Eat an iPad http://t.co/AjoQLtfu2h via @Hedgeye $KC $CAFE @KeithMcCullough @Hedgeye…
Hedgeye
23 Apr 14 09:35:10
#Coffee Prices Go Gangbusters, #Fed Says Eat an iPad http://t.co/AjoQLtfu2h via @Hedgeye $KC $CAFE @KeithMcCullough @HedgeyeDJ
Hung Tran
23 Apr 14 08:24:04
RT @ETFcom: Coffee Funds Nearly Double So Far This Year $CAFE $JO http://t.co/XQlOGVF0e5
ETF.com
23 Apr 14 08:15:49
Coffee Funds Nearly Double So Far This Year $CAFE $JO http://t.co/XQlOGVF0e5
stk_invst
23 Apr 14 08:05:08
$SBUX Short via puts. How long b4 price of $JO & $CAFE will give withdrawal symptoms ...
Cinthia Murphy
23 Apr 14 07:50:49
Coffee Funds Nearly Double So Far This Year http://t.co/OovzxvwgMx #ETFs $JO $CAFE
Drew Voros
23 Apr 14 07:31:10
Coffee Funds Nearly Double So Far This Year $JO $CAFE http://t.co/gXhm1gRN0t …
ETF.com
23 Apr 14 07:29:51
Coffee Funds Nearly Double So Far This Year $JO $CAFE http://t.co/XQlOGVF0e5
Cinthia Murphy
23 Apr 14 07:00:17
Coffee Funds Nearly Double YTD http://t.co/V3rZwdHBAd #ETFs #ETPs #ETNs $JO $CAFE
Tom Psarofagis, CMT
23 Apr 14 06:11:59
Watch that coffee break-out $JO $CAFE
Stan
23 Apr 14 02:38:44
RT @KeithMcCullough: Stay w/ the #InflationAcclerating $CAFE $UNG $DBA slows real growth (long $TLT) position
ETF alpha
23 Apr 14 01:32:53
#Coffee ETNs Could Face Technical Headwinds http://t.co/isyHXSR5yh $JO $CAFE via @TomLydon
Stockaholics
22 Apr 14 22:51:21
Members saw 5,000% gains on Penny Stock Alert's in 4 months! Subscribe Today: http://t.co/5B5saivZk0 $CAFE $GSG $RJI
Seeking Alpha
22 Apr 14 22:42:29
Commodities Forecast: Coffee Reaching Tipping Point http://t.co/1PSFxRcn6V $CAFE $JO
MarchingOrders
22 Apr 14 22:24:31
RT @KeithMcCullough: I know. My last 2 buy signals in commodities $CAFE and $UNG really wrecked the "little guy" @TheStalwart
Stockaholics
22 Apr 14 19:47:29
Our Penny Stock Newsletter Picks, Gained 5,000% in 4.5 months! Subscribe Today: http://t.co/5B5saivZk0 $CAFE $GSG $RJI
Bertie Beyer
22 Apr 14 16:16:03
$CAFE Will Coffee ETFs Continue http://t.co/DvwZ0GFwUb
ETF Trends
22 Apr 14 15:20:08
#Coffee ETNs Could Face Technical Headwinds http://t.co/CZZsA151HO #ETFs #commodities #agriculture $JO $CAFE
Tom Lydon
22 Apr 14 15:15:10
#Coffee ETNs Could Face Technical Headwinds http://t.co/oRkhFpTzfX #ETFs #commodities #agriculture $JO $CAFE
ETF Database
22 Apr 14 13:10:09
#ETF Wrapup: $JO and $CAFE up over 8%, $OIL and $USO down more than 1.7%
Keith McCullough
22 Apr 14 12:49:16
I know. My last 2 buy signals in commodities $CAFE and $UNG really wrecked the "little guy" @TheStalwart
Robin Cage
22 Apr 14 12:35:15
$CAFE Will Coffee ETFs Continue http://t.co/DywBNAgjDk
Stockaholics
22 Apr 14 12:31:07
Our Penny Stock Newsletter Picks, Gained 5,000% in 4.5 months! Subscribe Today: http://t.co/5B5saivZk0 $CAFE $GSG $RJI
Cal
22 Apr 14 12:18:28
RT @KeithMcCullough: Stay w/ the #InflationAcclerating $CAFE $UNG $DBA slows real growth (long $TLT) position
Keith McCullough
22 Apr 14 12:18:27
Stay w/ the #InflationAcclerating $CAFE $UNG $DBA slows real growth (long $TLT) position
Chris Hossli
22 Apr 14 12:14:13
RT @KeithMcCullough: Coffee inflation $CAFE +8% is rocking the house (again)
Roger
22 Apr 14 12:03:53
RT @KeithMcCullough: Coffee inflation $CAFE +8% is rocking the house (again)
Keith McCullough
22 Apr 14 12:03:48
Coffee inflation $CAFE +8% is rocking the house (again)
Stockaholics
22 Apr 14 09:30:14
Our Penny Stock Newsletter Picks, Gained 5,000% in 4.5 months! Subscribe Today: http://t.co/5B5saivZk0 $CAFE $GSG $RJI
ブラッド
22 Apr 14 07:36:45
@HCPG $jo and $cafe breaking out again. That's working.
Market Trader Daily
22 Apr 14 06:45:59
$SYRG 11.68 $IIN 6.41 $LEJU 13.0 $CE 61.0 $CAFE 27.30 $JJN 24.99 $ROIC 15.82 $ALV 103.69 $EROS 16.97 $EXAM 37.53 new highs
Lagos Capital
22 Apr 14 06:26:54
RT @StuOnGold: Coffee futures breaking out here. +7.6% this morning $KC_F , $JO & $CAFE
Stuart A. Brown
22 Apr 14 06:21:31
Coffee futures breaking out here. +7.6% this morning $KC_F , $JO & $CAFE
Michael DeFonso
22 Apr 14 06:20:32
@KeithMcCullough I almost think the $CAFE $RTA alert to sell yesterday was a mistake. Close to the LOD. I was just about to buy.
Stockaholics
21 Apr 14 20:56:36
After 5,000% gains, our New SECRET Penny Stock Alert, is coming today! Check it out: http://t.co/jrft0mERif $CAFE $GSG $RJI
Stockaholics
21 Apr 14 16:27:32
After 5,000% gains, our New SECRET Penny Stock Alert, is coming today! Check it out: http://t.co/jrft0mERif $CAFE $GSG $RJI
Stockaholics
21 Apr 14 13:20:56
After 5,000% gains, our New SECRET Penny Stock Alert, is coming today! Check it out: http://t.co/jrft0mERif $CAFE $GSG $RJI
Keith McCullough
21 Apr 14 12:06:26
Our worst performer of the day in #RealTimeAlerts $CAFE was our best on Thursday #happens
Rick Gulley
21 Apr 14 11:45:55
@KeithMcCullough $SBUX, $CAFE, $NKE, $KO. Bring it!
Dimitrios Tamvakas
21 Apr 14 10:24:01
RT @Hedgeye: @Hedgeye Cartoon of the Day: Mugged http://t.co/T7Y9BTgxeb $CAFE $UUP http://t.co/N4t1LUKnIW
Brian McGough
21 Apr 14 10:23:29
RT @Hedgeye: @Hedgeye Cartoon of the Day: Mugged http://t.co/T7Y9BTgxeb $CAFE $UUP http://t.co/N4t1LUKnIW
Hedgeye
21 Apr 14 10:22:06
@Hedgeye Cartoon of the Day: Mugged http://t.co/T7Y9BTgxeb $CAFE $UUP http://t.co/N4t1LUKnIW
Dean Campbell
21 Apr 14 07:36:08
RT @KeithMcCullough: Video | My Macro Notebook 4/21: JAPAN $DXJ | FOOD $CAFE | UST 10YR $TLT http://t.co/rtV4uQiHlP
Keith McCullough
21 Apr 14 07:29:17
Video | My Macro Notebook 4/21: JAPAN $DXJ | FOOD $CAFE | UST 10YR $TLT http://t.co/rtV4uQiHlP
Chester Bryson
21 Apr 14 03:53:15
$CAFE Will Coffee ETFs Continue to B http://t.co/578RWkTvyW
				
				
By  +Follow September 17, 2013 10:04AM
Share:

Editor's Picks

Comments

 

blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.