Lesismore46

Is a Coffee Price Breakout Imminent?

Coffee stocks are loosely correlated with the price of coffee beans. Since coffee sellers must buy the coffee beans as a production input, if the cost of coffee beans rises then the coffee sellers cost rise and profits fall. However if the coffee seller is selling more coffee to an increase in demand either locally or internationally, then the seller can pass on some of the higher costs in the form of higher ground coffee prices. The short answer is coffee sellers would rather see stable, slow rises in coffee bean prices and do not want to see a sharp breakout in coffee bean prices because they can not push the increased price on to their buyers and hence profits will fall.

Shelf Life Ground coffee - 2 years unopened, 2 weeks opened (in refrigerator)