Thursday, August 23, 2012

Quick thought: prices of coffee

Today the wall street journal came out with an article stating that the demand for robusta beans has gone up 18%, while the more flavourful cousin arabica bean has gone down by 30%.

Fueled by the "Euro crisis/ slow-down" we can only come to a hand full of outcomes...
If demand for the more prized arbacia bean has lowered, farmers will increase prices to keep a float, if they do not sell, some farms might need to slow down production or cut costs to sell for cheaper.

With arabica beans reaching peak prices in 2010, can our burgeoning N.America market accommodates Europeans coffee craving slowdown?

What are your thoughts?

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