Coffee is rising sharply at the end of the month!

2:10 PM July 31, 2020

Today, the price of coffee is rising by 1.7%, while this month the price has already increased by over 16%. The recent price increases have been related to the strong rebound of the Brazilian real. Additionally, the number of speculative net positions is growing. Short positions are covered by long positions which enhances the current rally. Also, forecasts of an increase in demand also contribute to higher prices. According to the Fitch agency, spending on coffee is to increase by over 5% y / y this year, while the 5-year average indicates a 1% increase.

The price of coffee is at its highest since the second half of April. The fundamentals are now getting better, although the main reason for the rebound is the strengthening of the Brazilian real. Source: xStation5


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