Coffee Was the Big Winner

24 Pages Posted: 9 Apr 2016

Date Written: April 5, 2016

Abstract

Recently, in 2015, once again a historic day in the financial markets. And not referring to the situation when major indexes fell sharply just before the close of trading by more than 2.5%. It happens regularly. Labor costs in the producing countries are significantly reduced - because of the strength of the dollar. The explanation behind this is simple: the wage want in the local currency. Coffee, driven by falling supplies from drought-stricken regions within Brazil and Columbia and steady demand, entered a short, countertrend rally from February 2014 to December 2014. Cause building, the accumulation or dissipation of energy necessary to fuel mark up (up) or mark down (down) that tested previous support as resistance, confirmed August's 2015 breaking of the ice as continuation of mark down. Coffee prices rose in price last year by 71.36%. This coffee was not only the biggest winner in the commodity market, but - if you like - even the most successful asset class at all.

Keywords: Coffee, Commodity Stocks, Raw Materials

Suggested Citation

Arsov, Aleksandar, Coffee Was the Big Winner (April 5, 2016). Available at SSRN: https://ssrn.com/abstract=2759533 or http://dx.doi.org/10.2139/ssrn.2759533

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