Coffee prices are increasing due to soaring demand in emerging economies, sustained high demand in traditional major coffee markets (e.g., U.S., Europe), supply disruptions due to inclement weather, avoidance of increased production investment due to fear of boom-bust cycle and the five years required for coffee plants to mature, and speculative trading in coffee futures markets with large infusions of money from hedge funds, driving up commodity prices across the board.
Coffee prices are increasing due to soaring demand in emerging economies, sustained high demand in traditional major coffee markets (e.g., U.S., Europe), supply disruptions due to inclement weather, avoidance of increased production investment due to fear of boom-bust cycle and the five years required for coffee plants to mature, and speculative trading in coffee futures markets with large infusions of money from hedge funds, driving up commodity prices across the board.