Coffee

[winston]

Big Profits Possible From This Popular American Habit

By Matt Badiali

If you're anything like most Americans, you drink coffee every day.

Around 100 million U.S. adults do. On average, they spend nearly $165 per year on it. That's why we import about $4 billion worth of coffee annually. In total, the U.S. coffee market is worth about $18 billion.

And right now, your morning cup of joe could make for a good investment...

As you can see in the following chart, the price of coffee – the raw, unroasted beans – is down nearly 50% from its highs in October 2014...

Please Enable Images to See this

Today, it is at its lowest level since November 2013.

SentimenTrader.com – an excellent website that tracks investor sentiment – suggests that coffee prices aren't heading higher any time soon.

However, if they fall further, speculators looking to bet on rising coffee prices could buy the iPath Pure Beta Coffee Fund (CAFE) or the iPath Bloomberg Coffee Fund (JO). Both funds track the price of coffee using futures contracts.

Either would be a good way to profit when coffee prices eventually start to rise. But today, the better opportunity is in the companies that sell the coffee.

We've already seen some big gains in the sector. In December, private-equity firm JAB Holding purchased specialty coffee maker Keurig Green Mountain for $14 billion. Investors made 72% overnight.

And with the price of beans falling 30% over the last year, it's no surprise that coffee giant Starbucks (SBUX) saw its highest profits in years in late 2015. That's not entirely due to cheaper beans, but they certainly helped.

Coffee wholesaler Farmer Brothers (FARM) has several proprietary coffee brands in grocery stores. It also supplies coffee to many "gourmet" coffee shops. Like Starbucks, Farmer Brothers' last four quarters were excellent. Cost of revenue fell and gross profits rose in each of the last four quarters.

The same trend can be seen in the $100 million small-cap coffee company Ten Peaks Coffee (TPK.TO). The Canadian firm also saw much higher profits in 2015.

Investors looking to find a creative way to pay for their java habits should look at the companies that sell coffee. With prices low and showing no signs of rallying any time soon, these companies should continue to post excellent profits for the next couple of quarters.

Source: Stansberry Resource Report

[winston]

How to Transform Your Coffee Into a Wonder Drug

There's a right way to dose yourself with coffee so that you get the most of its performance-enhancing benefits.

by Seth Porges

Source: Bloomberg

http://www.bloomberg.com/news/articles/ ... onder-drug

[winston]

Study: Miscarriages Linked to Caffeine Intake of Women and Men

By Denisse Moreno

According to the study from researchers at the National Institutes of Health (NIH) and Ohio State University, women who drink more than two caffeinated drinks daily during the first seven weeks of pregnancy are most likely to miscarry.

The study said that if a woman and her partner drink more than two caffeinated beverages daily during the weeks leading up to conception, it will mostly like cause pregnancy loss.

However, researchers say that women who take multivitamins daily before conception and early pregnancy are less likely to miscarry than those who don’t. They also said that other studies showed that vitamin B6 and folic acid can reduce the risk of miscarriage.

Source: Epoch Times

http://www.theepochtimes.com/n3/2001223 ... 3-billion/

[winston]

Global Coffee Shortage Looms as Market Braces for Climate Change

by Whitney McFerron

October 1, 2015

Brazilian Coffee Harvest As Exports Fell in June

Crop needs to rise by 50 million bags in 10 years, Illy says
Producers, industry groups meeting this week in Milan

Rising consumption, especially in emerging markets, means global production will have to rise by an extra 40 million to 50 million bags of coffee in the next decade, said Andrea Illy, the chairman and chief executive officer of Illycafe SpA, a roaster based in Trieste, Italy. That’s more than the entire crop of Brazil.

The world is set for a coffee production deficit of 3.5 million bags in the 2015-16 season

Global coffee consumption will increase by a third to 200 million bags by 2030

Production, pegged at 144 million bags this year, may rise to meet consumption for a balanced market in 2030, as long as smallholder farmers can boost productivity by then,

Arabica coffee, the premium bean that’s used by shops including Starbucks Corp., is most at risk from rising temperatures, Illy said.

The robusta variety is more resilient or robust, as its name suggests, he said.

Brazil is the largest arabica grower and Vietnam is the biggest producer for robusta. Illy only uses arabica.

Source: Bloomberg

http://www.bloomberg.com/news/articles/ ... ate-change

[winston]

Sep 30, 2015

Starbucks Gets a Coffee-Bean Buzz From Slumping Brazilian Real

by Marvin G Perez

Arabica beans down 27% in year, boosting company's bottom line
Rabobank predicts more commodity price volatility ahead

Coffee prices are being dragged lower by a weaker Brazilian currency that incentivizes export sales from the world’s top supplier.

Source: Bloomberg

http://www.bloomberg.com/news/articles/ ... ilian-real

[winston]

This commodity is nearing a breakout

by Jeff Clark

Source: Stansberry Short Report

http://thecrux.com/top-trader-get-ready ... commodity/

[winston]

Funds Swing to Bullish on Robusta Coffee Amid Dryness Concerns

by Whitney McFerron

Money managers are net-long for the first time since August
Dry weather reducing crop potential in Vietnam, Indonesia

Speculators are bullish on robusta coffee for the first time in almost nine months as dry weather threatens crops in Vietnam and Indonesia, two of the largest producing countries.

Money managers were net-long 9,413 futures and options contracts as of May 10, according to a report published by ICE Futures Europe on Monday. A week earlier, they were net-short 1,144 contracts, after holding a bearish position since the week ended Aug. 25.

Futures have climbed almost 10 percent this year in London, and touched $1,686 a metric ton on Monday, the highest since August.

Output in Vietnam, the top grower of the robusta variety used in instant coffee, may fall to a four-year low next season of 1.5 million tons, according to a Bloomberg survey of eight traders and analysts released last week.

The harvest in Indonesia, the third-largest producer, may slide 10 percent to 570,000 tons, a separate survey showed.

"Concerns linger over robusta availability,” the International Coffee Organization said in an e-mailed newsletter. "Reports of drought in several robusta-growing regions have spurred speculation over potential shortages."

Source: Bloomberg

[winston]

Coffee prices struggle… down 20% since mid-August.

[winston]

Coffee prices jump more than 10% this month.

[winston]

There’s more upside ahead for this commodity

by Jeff Clark

Source: Stansberry Short Report

http://thecrux.com/theres-more-upside-a ... commodity/