[Homeroast] fear of coffee stockpiling as prices climb

sci scizen at gmail.com
Fri Sep 10 16:20:28 CDT 2010


Exactly Joseph. Coffee is the 2nd most traded commodity on Earth. Does
anybody really believe that there has not been market manipulation in the
past? Pendergast's history of coffee, Uncommon Grounds, explains how the
coffee markets have been whip-lashed and cornered in the past, causing
extreme price fluctuations. He even documents how vast quantities of coffee
have been destroyed because of overproduction and greed in an effort to get
the prices back up. The little farmers can't handle this price volatility.
Farm Gate, and FT (I hope), are great efforts to protect the little farmer
who makes the kind of coffee we drool over.

Ivan

++++++++++++++++++++++++++++++++++++++++
Date: Thu, 9 Sep 2010 13:18:04 -0700
From: Joseph Robertson <theotherjo at gmail.com>
To: "A list to discuss home coffee roasting. There are rules for this
       list,   available at http://www.sweetmarias.com/maillistinfo.html"
       <homeroast at lists.sweetmariascoffee.com>
Subject: Re: [Homeroast] fear of coffee stockpiling as prices climb
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The "whole story" is not as complex as you might think. Just as Opec
controls the price ( often very inflated due to stock piling )  of oil at
your local pump the largest growers of coffee can and probably have done the
same for years. Before commenting here read the first post in the thread and
try and understand the futures market as referred to in the original
article.
Thanks miKe for some clarification regarding the impact to small businesses
like us.
JoeR


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