Commodity Coffee Prices Are On the Rise

With commodity coffee prices on the rise, there is no doubt that coffee is a sound investment for many investors. Since the 1990’s, coffee has seen a resurgence in popularity across the Western world. Numerous high-end coffee chains have earned acclaim, and money, for their gourmet roasts and relaxing atmospheres. When the economy went into recession, it seemed like the coffee industry might suffer. Many people were no longer willing to pay five or six dollars for a cup of coffee. Instead of giving up gourmet coffee altogether, however, consumers have shifted to a more direct buying method. They are avoiding the middle man by ordering gourmet beans from the roasters themselves, and are brewing fresh coffee in their homes. While this shift does not bode well for the coffee chains, it is beneficial for many investors. Sustained sales are pushing commodity coffee prices higher and it seems that the coffee industry is as healthy as ever.

Commodity Coffee Prices: Protect Yourself from a Bad Growing Season

If you are interested in investing in coffee, there are a few things you should consider before making your first move. Commodity coffee prices depend largely on the health of the coffee crops. Coffee beans are grown in a number of key areas around the world, such as Indonesia, South America and South Africa. One way to avoid the negative effects of a bad growing season is to diversify your investments. Research the climate and weather in each country and find out which tends to be the most stable. You should put most of your money in beans from this country, but you should also invest in coffee from several other locations. This will help cut your risk in case weather changes or disasters cause commodity coffee prices to fall.