As some readers will be aware, we have jumped in and out of the iPath Dow Jones-UBS Coffee ETN (NYSEARCA:JO) this year as the price of coffee fluctuates. Well the price of coffee has come back onto the table recently following the release this week of the US Department of Agriculture’s coffee forecast which shows that world stock levels are likely to fall for the second year running. The USDA estimates a drop of 3.9 million bags to finish the 2016-17 season with just 31.5 million bags. If this is the case, and it is a big if let’s not forget as it is just a forecast, it would mean that inventory levels would be at their lowest since the 2011-12 season at a time when demand is heightening.
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Did you know?
The famous Lloyd's of London originally began as Edward Lloyd's coffeehouse.