Coffee

Re: Coffee

Postby winston » Mon Sep 19, 2016 6:23 pm

Climate change is threatening the world's coffee supplies

Coffee production provides work for more than 120 million of the world’s poorest people. Climate change, however, is a mounting threat.

Rising temperatures in Central America are fuelling the growth of the devastating leaf disease known as coffee rust (pdf), leading to drops of 30% or more in coffee production in the region.

In Ethiopia, where an estimated 25% of the population depends directly or indirectly on coffee for their livelihoods, climate change is also having a profoundly negative impact, with production predicted to significantly decrease in certain areas.

Source: The Guardian
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Re: Coffee

Postby winston » Sun Oct 02, 2016 6:52 pm

Drink Up: Health Benefits of Coffee Are Numerous

By Sarah Brewer

Having 2 to 3 cups per day was associated with an 18% reduction in mortality, while 4 to 5 cups coffee per day was associated with a 21% reduction in mortality.


Source: http://www.drsarahbrewer.com

http://www.theepochtimes.com/n3/2164261 ... -numerous/
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Re: Coffee

Postby winston » Wed Oct 05, 2016 8:01 pm

Sorry Coffee Addicts: Your Habit Might Become More Expensive Very Soon

by Jayson Derrick

Pay attention coffee drinkers: the price of your morning Joe will soon become more expensive due to poor weather issues in Brazil affecting various commodities needed to produce a steaming hot cup of coffee.

According to Bloomberg, dry weather is currently affecting production of arabica and robusta beans across Brazil's coffee belt region. Meanwhile, the same poor weather conditions is affecting production of orange juice.

Arabica coffee, Starbucks Corporation (NASDAQ: SBUX)'s preferred bean, traded at the highest level it has seen on the futures market since February 2015.

Brazil is the world's largest producer and exporter of arabica and robusta beans, as well as orange juice. In fact, orange juice futures and sugar are trading near four-year highs due to poor weather issues in Brazil.

Meanwhile, the net-long position in sugar rose 6.4 percent to 284,448 futures and options in the week ended September 20, Bloomberg noted. Investors are also becoming incrementally bullish on arabica coffee.

A combined measure for holdings in sugar, coffee and orange juice is now the highest since at least 2006.

"This isn't a short-term phenomenon -- you are seeing some real supply-side constraints," Lara Magnusen, a portfolio manager at Altegris Advisors told Bloomberg.

However, Ben Ross, a portfolio manager and co-head of commodities at Cohen & Steers Capital Management, also told Bloomberg that "at some point, the prices are going to hurt demand" and the upside to the various commodities "is limited."

Source: Benzinga

http://finance.yahoo.com/news/sorry-cof ... 51021.html
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Re: Coffee

Postby winston » Wed Oct 19, 2016 8:13 am

The Company Taking Over Breakfast in America

by Leslie Patton

Billionaire Reimann family is backing U.S. coffee empire
Company is using new co-branded restaurants to tout properties

JAB Holding Co., the European investment firm that has quietly acquired many of the best-known U.S. coffee and food brands, is beginning to put the pieces together in its bid to build a caffeine empire.

Source: Bloomberg

http://www.bloomberg.com/news/articles/ ... 101816_BIZ
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Re: Coffee

Postby winston » Fri Oct 28, 2016 9:58 pm

This Commodity Looks Poised to Push Higher

By Jeff Clark

Source: The S&A Short Report

http://dailytradealert.com/2016/10/28/t ... sh-higher/
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Re: Coffee

Postby winston » Fri Nov 04, 2016 8:17 am

Why a coffee company isn't bullish on coffee right now

by Melody Hahm

It’s a bittersweet time of the year, time to dig up the coats buried deep in your closet and brace for the impending winter chill. But cold weather does make some warm treats more enjoyable, like steaming cups of coffee. And illycaffè is a major benefactor of the trend.

Illy’s unique blend, made of 9 Arabica selections from around the world, is available in 140 countries at 100,000 locations worldwide.

President and chairman Andrea illy says the company serves the blend in more than 7 million cups per day. After Italy, illy’s biggest market is the United States. Its fastest growing is China.

Founded in 1933 by Andrea’s grandfather, Ernesto Illy, the company remains 100% owned by the Illy family. Illy says he’s not resting on the company’s legacy or laurels. Last week, the coffee maker announced a 38 million euro investment in its brands outside of coffee, which include Agrimontana (jams), Domori (chocolate), Dammann Frères (tea) and Mastrojanni (wine).

The company is diversifying, in part, in response to the growing threat climate change is posing to the world’s coffee supply.

“We’re proud of being family owned. But we also started diversifying in other industries because our philosophy is art and science for the best quality. If we focus on only coffee one day we’ll need to compromise on quality for bigger volumes, which we don’t want,” Illy told Yahoo Finance. He expressed that he would rather proactively diversify beyond coffee than be in a position where he’s not able to keep up with the demand.

The need to expand beyond coffee

Illy is diversifying away from coffee not by choice, but by necessity. Beyond impacting quantity and productivity coffee, climate change is hurting the quality of coffee, according to Illy.

Higher temperatures associated with climate change have taken a toll on coffee crops, as has the emergence of more resilient pests, according to the Union of Concerned Scientists.

“There might be as low as 50% of the currently suitable land still available by 2050. But because consumption is growing, by 2050 we will also need to produce twice the amount of coffee as today. So multiplying productivity by four is quite a challenge,” he said.

So what exactly are companies like illy doing to adapt to the reduction of suitable land to grow coffee beans?

Illy is changing its agronomical practices in order to make irrigation, shadowing, and more precise agriculture. The company is also developing new cultivars because the natural genetic variability of the Arabica plant is too narrow.

“Besides trying to change the ecosystem … it’s something that nobody can do on his own. This requires public-private partnership and collaboration between consuming countries and producing countries,” he explained.

Because of the insatiable demand for coffee, he believes there is plenty of room for multiple players, even giving a hat tip to Starbucks (SBUX) for popularizing gourmet coffee.

“In the last two decades, coffee has been de-commoditized. So it’s an experiential product nowadays,” he said. “Starbucks is our colleague, not competitor. I think they are strong in distribution, very strong in communication. But I believe we’re stronger in the product, so what, [competition] is good for building the market.”

When asked about trends like the pumpkin spice latte, which Starbucks introduced in 2003, Illy said he’s still a traditional man but is interested to see what products consumers are gobbling up.

“[These things] are not for me to judge. It’s the consumer who judges,” he said. “If one day we all drink pumpkin coffee, why not? I doubt it. I prefer the espresso.”

Source: Yahoo Finance
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Re: Coffee

Postby winston » Sat Dec 10, 2016 3:10 pm

3 Coffee Stocks to Heat up Your Holiday Returns

"Morning joe" is getting a kick, and that's a good thing for coffee stocks

By Josh Enomoto

First, the price of premium Arabica beans has normalized. In 2016, the average price per metric ton is around $163. That compares very favorably to 2011, when the average price exceeded $273.



Source; Investor Place

http://investorplace.com/2016/12/3-coff ... Euccvl96M8
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Re: Coffee

Postby winston » Tue Dec 13, 2016 8:51 pm

Coffee-Loving Millennials Push Demand to a Record

by Marvin G Perez

October 31, 2016

Americans are becoming java junkies at an earlier age, and young adults are increasing their daily consumption at a fast enough pace to make up for declines by older folks.


Millennials -- a cohort of young people now aged about 19 to 34 -- account for about 44 percent of U.S. coffee demand, according to Chicago-based researcher Datassential.

At the same, adults 60 and older saw a drop to 64 percent from 76 percent, and there was also a decline for the 40-to-59 age group.


Dry weather in Brazil has hampered the country’s crop of robusta coffee, the bitter-tasting beans used in instant coffee. The woes come after drought already cut output in Asia.

With supplies of robusta getting harder to find, more coffee roasters are using arabica beans, the smoother variety favored by Starbucks Corp., pushing up prices for that commodity.


There are also bigger crops coming from Peru and Honduras, which could ease the tight availability


Source: Bloomberg


https://www.bloomberg.com/news/articles ... -to-record
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Re: Coffee

Postby winston » Tue Dec 13, 2016 8:54 pm

Coffee Trade Statistics - October 2016

World coffee exports amounted to 9.13 million bags in October 2016, a fall of 1.9% compared with 9.31 million bags in October 2015.

In the twelve months ending October 2016, exports of Arabica totalled 71.93 million bags compared to 69.21 million bags last year; whereas Robusta exports amounted to 40.46 million bags compared to 43.81 million bags.

Source: ICO

http://www.ico.org/#sthash.ZuW75XV3.dpuf
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Re: Coffee

Postby winston » Thu Dec 15, 2016 9:33 am

vested in JO

It’s Time to Buy This Commodity Again

By Jeff Clark

The coffee trade is setting up for another bounce.

When we pocketed a 30% gain on the iPath Bloomberg Coffee Subindex Total Return Fund (JO) last month, I wrote that we’d look to get back into the position when coffee relieves its overbought position and comes back down toward a support level.

I didn’t think it would happen so soon. But here we are…

If JO can break out of the wedge to the upside, then it could run to its first resistance level at about $21.40. That’s about a 9% gain from Friday’s closing price.


Source: The S&A Short Report

http://dailytradealert.com/2016/12/14/i ... ity-again/
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