InvestIdeas

Coffee

While coffee prices are on an uptrend lately on higher demand, inclement weather in the major producing region – Brazil – have hampered the output.

Also, increasing demand in global markets owing to a rebound in economic conditions boosted the outlook for coffee prices.

Three years of drought in Brazil has primarily resulted in the dreary situation. As per Financial Times, about 90% of Brazil’s robusta beans — the lower quality type — is consumed domestically. Lack of supplies led Brazilians to opt for their first bean import.

Investors can thus invest in exchange-traded products like iPath Bloomberg Coffee Subindex Total Return ETN JO and iPath Pure Beta Coffee ETN CAFE. Both the products have a Zacks Rank 2 or a ‘Buy’ rating and charge 75 bps (see all agricultural ETFs here).

Source: Zack's Research

Lower Coffee Crops Expected In Brazil

Coffee crops are expected to fall 9% in Brazil in the 2017/18 agricultural season compared to previous season.

The main reason may be the routine pruning of coffee trees.

The production of Arabica coffee in Brazil may fall by 12.6% to 36.7mln bags while of robusta – to increase by 4.2% to 12.5mln.

Another factor which may support the prices is high demand for coffee in Brazil.

Brazil’s Ministry of Agriculture for the first time considers purchases of robusta coffee in Vietnam.

Brazil accounts for more than one third of global coffee crops and produces mainly Arabica variety.

The Brazil’s Coffee Exporters Council reports that national coffee exports slumped 9% since July 2016 till February 2017.

Vietnam accounts for about 20% of global coffee exports, mainly of robusta variety.

Source: IFC Markets

https://www.investing.com/analysis/tech ... -200179533

Does Caffeine Cause Dehydration?

By Ben Desbrow

Source: Griffith University

http://www.theepochtimes.com/n3/2241711 ... -238084345

Coffee: Return Of El Nino Is Bullish For Coffee Prices

Rising temperatures point to the possibility of El Nino return, which may negatively affect coffee crops.

Will coffee prices continue rising?

World coffee production is expected to recover this season unless ocean temperatures again rise later this year, enabling the return of El Nino.

A return of El Nino will raise the possibility of coffee shortages again, though currently there is an oversupply as producers have plentiful stocks despite lower crop last year.

Concerns El Nino may return as rising ocean temperatures point to increasing likelihood of such event are bullish for coffee prices.

Source: Investing.com

https://www.investing.com/analysis/tech ... -200183891

The Scientists Fighting to Save Us From a World Without Coffee

Climate change is threatening your morning caffeine fix.

by Marvin G Perez and Fabiana Batista

Coffee crops are under siege from deforestation, abnormally high temperatures, a lack of precipitation, and disease.

The global market is heading for its fourth straight year of deficit, according to estimates from Rabobank International.

Production will need to increase at least 50 percent by the middle of this century to keep pace with the demand, says Conservation International, an environmental organization.

Land suitable to grow the arabica beans favored by Starbucks Corp. and other specialty roasters will be cut in half worldwide by 2050

Leaf rust, a fungal disease that affects both arabica and robusta plants, is also devastating the industry. About 18.2 million bags of coffee worth about $2.5 billion were lost to the disease from 2011 to 2016, according to WCR.

Source: Bloomberg


https://www.bloomberg.com/news/articles ... mbergdaily

Coffee's Trend Remains Negative

By Chris Kimble

Coffee has been ice cold since November of 2016, losing nearly a third of its value.

Could this large 6-month decline turn into an opportunity?

Below looks at Coffee ETF (NYSE:JO) over the past few years.

Source: Investing.com

https://www.investing.com/analysis/coff ... -200186259

by behappyalways:-

Two cups of coffee a day reduces liver cancer risk by third, major study finds

Source: Telegraph

http://www.telegraph.co.uk/news/2017/05 ... jor-study/

not vested

May 1, 2017

Coffee's Trend Remains Negative

By Chris Kimble

The trend in coffee remains down, as it has created a series of lower highs for years.

One week's reversal action does not prove that a trend reversal is in play.

The first step toward proving that a trend reversal is in play would be an overhead breakout at (2).

https://www.investing.com/analysis/coff ... -200186259

12 Scary Facts About Coffee

By Jason Christoff

Source: www.healingthebody.com

http://www.theepochtimes.com/n3/2260354 ... ut-coffee/

Drinking a cup of coffee may add nine minutes per day to your life
http://www.telegraph.co.uk/science/2017 ... -day-life/