Coffee: back from the brink
At $1.15 a pound, the price of arabica coffee is well below the $1.70 level of mid-October, 2016.
On the other hand, it’s a relief for producers, who last month saw the price of internationally traded beans reach a 12-year low of $0.96.
On a short-term basis, prices may have found a floor.
Demand from consumer countries has been weak, with no growth this year.
On the other hand, supply in the most recent harvest showed growth of only 1.6 percent.
Long-term, prospects may be even more favorable.
With 4,000 stores, Costa Coffee is twice the size of Starbucks in Europe.
The global coffee shop market is estimated at $165 billion.