Remember when CO2 was going to cause coffee to go extinct?
With global output exceeding demand for a fourth year, accelerating sales will drive prices down 11 percent to $1.08 a pound by Dec. 31, according to the median of 18 analyst estimates compiled by Bloomberg.
“The lower real will most certainly help exports, making Brazil a much more aggressive seller,” said Rasmus Wolthers, a trader at Wolthers & Associates, a brokerage in Santos, Brazil. “There’s a lot of coffee in Brazil, and there isn’t enough space to store it all, so producers will have to sell. I expect to see much more aggressive sales offers.”
All that Robusta crap that was planted in Vietnam has come online.
Next time you pick up a bag of ‘coffee’ at the supermarket, have a close look at the ratio of ‘Arabica’ versus ‘Robusta’. ‘Robust’ tastes like rubber, but is higher in caffeine content. A cheaper buzz.
That’s right, the socialist regime in Vietnam is dumping that Robusta crap on the market, which has blown many small farmers out of the trade – you know them: the noble 3rd world independent farmers that were practicing ‘sustainable’ coffee agriculture in the 3rd world.
The modern commie: socialist on the outside, greedy on the inside.
Mandatory obligatory musical accompaniment for this thread: http://www.youtube.com/watch?v=KZOYW5G5AWE
The “modern” commie? Shaken, communists have never come in any other type but greedy—not to mention allergic to any activity requiring them to show up somewhere on time, sober and ready to do something useful. That is the whole point of communism—reaping where others sow, and killing them if they complain.
From others according to their ability, to me according to my greed. There is Karl Marx, may he burn for all eternity, and all his accursed disciples.
There’s always been more robusta around than a lot of people think. The cheap Italian brands like Lavazza and Medaglia D’Oro are often all or partially robusta.
That said, I certainly wouldn’t mind seeing prices fall on good Brazilian coffee.