Coffee’s decline been brewing a while

On February 2, 2022, I wrote that I expect the price of coffee to halve and I made reference of it ‘kissing’ its 200 week moving average.

Today. it is nearly there.

To be particular, its only 6% away.

Keep in mind that this is close enough and if/when it does touch its weekly oversold reading, it doesn’t stay there for too long.

p.s. show this chart to your local coffee shop and ask them why you’re paying 20% more for a cup than last year?

In the original note, I wrote, “By the way, just like the price of beer, I’ve never seen the price of coffee decline at the retail and premium level.

So, in other words, the price of coffee beans may halve but the price of your coffee beverage will firm.”

In all seriousness, your local coffee shop has plenty of other costs to provide reason behind higher prices.

For coffee buyers, importers and roasters….buying time is about now.

November 16, 2022

by Rob Zdravevski

rob@karriasset.com.au