Marvin G. Perez reports for Bloomberg News that coffee prices are falling fast. A rainy season in the country led to better Arabica coffee growth, which has helped coffee supplies rise and prices fall. It’s part of a bigger global trend toward cheaper food triggered by high inventories, favorable weather, cheap gas and currency declines, Perez notes.
“Arabica prices dropped 28 percent [in 2015] to $1.1915 a pound on ICE Futures U.S. in New York. The net-short position in futures and options increased to 16,734 contracts in the week ended Dec. 22, according to U.S. Commodity Futures Trading Commission data released Monday. The figures, which were delayed after the Christmas holiday, compared with 11,409 the prior week.”