The Price of Coffee and You.

In the last couple of years you may have noticed that a cup of coffee is not exactly cheap anymore. What used to be under $2.00$ is now over $2.50 or higher.

This is a many part problem, on the one hand you have weather and whatnot but that does not affect the longterm supplies as there is always next year and so on. On the other hand you have the stock market which is now played like the worlds largest and most expensive slot machine. In the end Both hands play together and effect you.

When a crop of coffee is destroyed and mass media picks it up they generally don’t play the news in a way that is helpful to the average person . instead they go on a just about myspace approach and say “OMG COFFEE GOT BLOWN UP ZOMG THERES NO MORE COFFEE OMG PRICES RISE!!!”  well the problem with that is its one crop in some place in the world. But, if you take the news at stock you’d be going “shit… thats going to hurt.”  Coffee is grown world wide. From the National coffee association of USA Coffee is grown in about 50 countries . In the last year coffee commodities  has have rose about 70% due to speculators looking for a pay-off with any commodity.  The problem with that is speculators tend to  buy up the coffee at unheard of rates than force the price up , the problem is that people that don’t even sell coffee have the ability to buy up coffee in the stock market, I could see if they had a limit cap on this but they don’t many other foods fall into this trap where they get bought up and sold and resold to the point of insanity.

Soon the only way to get a good cup of coffee is bleeding your self to death at a blood donation center, Giving blood is not a half bad idea but.. the price of coffee should not require you to give a damn kidney.

I’ve never liked the idea of speculators, because of the control they can assert over a market. Commodities should have some limit cap to outside buyers that have no reason to purchase coffee. to lock speculators out would be a bad thing but, limiting the damage they can do in the whole scale of things.

the reason i say limits is it makes the market much harder to game and force the prices way the fuck up .

Even dunkin donuts knows a bad thing when they see it

“Something as simple as a good cup of coffee at a fair price is under threat today because of intense pressure by hedge funds and other speculators,” said Ed O’Rourke, chief procurement officer for Dunkin’ Donuts National DCP LLC, a franchise-owned cooperative that handles purchasing and distribution to more than 6,000 Dunkin’ Donuts and Baskin Robbins outletsnationwide, in a Dec. 14 letter to the CFTC.

Honestly,  it seems like the stock markets are based in fantasy as far as the “Recovery”, and speculators are NOT helping things .


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