Trade of the Week: Coffee
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Trade of the Week: Coffee
Here we will present a weekly trading theme and underlying which @Phukettrader and @LoneWolf discuss further in their podcast.
This weeks’ trade has coffee as an underlying and below you can find more information about the products.
Brazilian plantations currently account for one third of the world's coffee exports. So, it came as no surprise that the price of coffee soared when the region suffered both drought and frost over the past year. Over a six-day period in July, the price of Arabica beans soared by 30%. The drought and frost in Brazil has led to a loss of crops on 1.5 million square kilometers of arable land - an area the size of Peru. Over half a billion kilos of coffee beans have been lost - enough to brew every American cup of coffee for a four-month period. In which direction do you see the price developing?
Source: Bloomberg 28.09.2021
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This information is in the sole responsibility of the guest author and does not necessarily represent the opinion of Bank Vontobel Europe AG or any other company of the Vontobel Group. The further development of the index or a company as well as its share price depends on a large number of company-, group- and sector-specific as well as economic factors. When forming his investment decision, each investor must take into account the risk of price losses. Please note that investing in these products will not generate ongoing income.
The products are not capital protected, in the worst case a total loss of the invested capital is possible. In the event of insolvency of the issuer and the guarantor, the investor bears the risk of a total loss of his investment. In any case, investors should note that past performance and / or analysts' opinions are no adequate indicator of future performance. The performance of the underlyings depends on a variety of economic, entrepreneurial and political factors that should be taken into account in the formation of a market expectation.