Posted on 02/16/2022 6:24:18 PM PST by blam
Goldman’s head commodity strategist and one of the closest-followed analysts on Wall Street told the audience of Bloomberg TV last Monday of commodity markets pricing in shortages.
“I’ve been doing this 30 years and I’ve never seen markets like this,” Currie told Bloomberg in an interview. “This is a molecule crisis. We’re out of everything, I don’t care if it’s oil, gas, coal, copper, aluminum, you name it we’re out of it.”
This leaves us with one particular commodity that most Americans use daily, and it’s not crude products, such as gas and diesel, but, in fact, coffee. Over 150 million daily drinkers might be subjected to prices that may ‘soar out of control,’ according to a new report from analysts at Rabobank, led by Carlos Mera.
In agricultural markets, supply disruptions and lower exports from Central and South American producers have resulted in dwindling stockpiles of arabica beans on the ICE futures exchange. We noted not too long ago that ICE futures exchange hit their lowest level of storage of the bean in two decades. Coffee buyers are panic hoarding as some have switched from arabica to lower-grade robusta.
Mera warned ICE-monitored inventory could plunge to “half a million bags in three months,” and the “fast pace of decertification could lead to uncontrolled prices spikes in the short-term.”
None of this should be surprising for ZeroHedge readers who have been well informed about the coffee troubles developing over the last year. We noted a nightmare of factors, including drought and frost, that have dramatically reduced output potential. There’s also been logistical issues and soaring transportation costs.
Here are a few of our notes on the situation:
Arabica prices on the ICE futures exchanges hit a decade high of $2.59 a pound, and if Mera is correct, prices could be headed much higher.
Supply crunches are showing up on a seasonal basis. Prices have never been higher for this time of year except for 2011.
For the 150 million Americans who are addicted to coffee, read our commodity note from six months ago, “A ‘Cup Of Joe’ Is About To Get A Whole Lot More Expensive,” it was only a matter of time before prices would hyperinflate away.
Rounding back to Goldman’s Currie, everything is becoming a lot more expensive as the Bloomberg Spot Commodity Index powers to new all-time highs. And no wonder President Biden gave certain members of the Federal Reserve the go-ahead to release hawktard statements in the attempt to cool inflation because it’s ripping apart households and damaging the president’s polling numbers.
Huh?
Killer coffee. Ban it.
Cup of Joe - how fitting.
coffee substitute is back , LOL
Good thing I stocked up on plenty of freeze dried 😄
Drink tea
I got about 6 months supply in the pantry.
Soar!
Out of control!
Plunge!
Sell the house. Sell the car. Sell the kids.
Find someone else.
Forget it.
I’m never coming back.
Forget it.
Doocey: Is there something you’re keeping from us?
Psaki: And we’re all out of coffee.
Mayhem ensues.
Not only is the price of coffee going up, but the packages are being Biden sized - 28 oz bag is now 24 ounces for $3.00 more a bag.
“How does a rabbi make his coffee
Hebrews it.”
There’s no such thing as too high a price for coffee.
There is either coffee or no coffee.
The TP I recently bought has shrunk from the TP I bought a year or so ago. The old stuff is 4” x 4”. Now it’s 4” x 3.8”
I’ve seen what happens during an ice storm caused power outage.
One hit NYS many years ago and people were lined up across the front of the local supermarket that had a huge generator and was selling coffee as fast as they could make it for every caffeine addict that needed their daily fix.
Anyone who wants to bring this country to its knees quickly could do it just by messing with the coffee supply.
I did for barter purposes.
I love the smell but cannot stand the taste.
But you could see this coming, especially after the freezes in Brazil last year.
You should send that one to Dana Perino.
She does corny jokes on The Five sometimes.
.
My Kona Hawaiian Volcanic Reserve Turkish Grind is up $10/lb to $75/lb, my Jamaican Blue Mountain Coffee Turkish Grind is also up $10/lb to $65/lb, and the pricey Civet Kaya Kopi Luwak Coffee Whole Bean is up $15/lb to $198/lb (never tried it).
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