Oil's lower-for-longer mantra has spilled into coffee market
To the delight of bearish investors and dismay of growers, the lower-for-longer mantra that has dominated oil has just spilled into coffee.
While global production is forecast to fall short of consumption next season, the shortage will be too small to offset the current surplus, according to Hannah Rizki, head of coffee research at Volcafe, one of the world's top coffee traders. That means prices, which on Tuesday hit a more than 12-year low, probably will be stuck in a lower range for longer, said Rodrigo Costa, the United States-based director at Brazilian shipper Comexim.
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