We at the Buena Vista Roastery and Bongo Billy’s Coffees are noting the high commodity prices for coffee, the market having recently reached a 13-year high on Friday. Every time we order some new green beans, the prices are higher. We’re okay with that and we understand that the market fluctuates. The Commodity Market on Friday was at $1.85. That is the base price for the first transaction of coffee, before you add the various takes that others involved with export, import and distribution. You the consumer may not feel the change in your own pocket books, unless the roasters and retailers start to adjust prices accordingly. Apparently Folgers (owned by Smuckers) will raise their prices 9% in response. Others may follow suit. Brazil and Colombia, the top two producers of Arabica beans, play heavily in the C-Market and dictate the swing of the market, according to production. When the prediction is low, the market goes up on speculation. When it is high production, the market will swing the other way. That’s the concept anyway. Read this Market Watch for some more detail.
Fortunately, the market went down to $1.83 on Monday. Not that two cents is a big deal, but maybe there is relief. And for us at the Roastery, we’ll just keep making great coffee and think about the market after a good mountain bike ride on the Midland Trail in Buena Vista.
