3min chapter

Odd Lots cover image

Why the Price of Coffee Beans Soared in the Last Year

Odd Lots

CHAPTER

Coffee Futures

Coffee is one of the most socially conscious commodities out there, i think. Traders will be buying or selling futures or options to protect their books and protect their hedges indifferent ways. The opposite is true on the other side, right? When when coffee is vastly over supplied, you need to push the prices down to a point that's going to disincentivise production. And so it is better for the market if we know there is going to be a short age, for the market to start rallying now.

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