Thursday, August 28, 2008

There Is a New Development in The Brazilian Coffee Market

By Ken Morris


Coffee is closer to the color of dark brown but some call it Black Gold in the global marketplace! Well, it is especially pricey! Have you visited your food market lately? The dollar value of artisan niche coffee seems to change beyond the pace of any product sitting on the market shelf. Why is that?

Maybe It is Weather? By far, Brazil is the world's principal coffee producer. However, since that nation is located in an environmental sensitive area it is at the mercy of the weather conditions, which can be crazy and unpredictable. Frosty months in Brazil are typically June, July and August. There is also the rainy season from September to November. Both seasons may impact the coffee harvest.

Long periods of cold and frosty conditions or too little or not enough rain may affect the harvest and how much the farmer will be paid. A dire hoarfrost will in one night ruin a large segment of coffee crop. Additionally, a shocking frost can destroy coffee bushes? capability to produce for two to three years.

Is It a Commodity? Coffee is an article of trade on the big coffee exchanges around the world. Beans and corn are also commodity exchanges, but nothing rises and falls like the price of coffee. coffee is the second leading import to the US next only to oil. Sure, the price of oil ebbs, and flows as well, but nothing rises, and falls like the dollar value of coffee. Just ask your local coffee house merchant.

Just as you do in the stock market, to earn capital in the coffee arena, you must be able to forecast correctly what way the price is headed. Will it go up or down? There is a new development in the Brazilian coffee market. Coffee farmers are moving north with the potential of stabilizing the worldwide coffee value, because that where frost is less likely to devastate crops.

The Caffeine Factor Several people assert that no other drug propels our nation like caffeine -- not even nicotine. Picture all of your acquaintances' personalities transforming, if they awakened tomorrow and there was no coffee. There might be a lot of severe headaches as well as many angry folks looking for caffeine with a loss of energy.

Will Growth Continue? According to the world coffee market experts, the pressure for everyone?s favorite beverage will carry on by leaps and bounds for no less than the next 30 years. The chief explanation given by the coffee merchants is that China will turn out to be the world's prime purchaser of the beverage. Even if by 2020 the Chinese typically consumed only one cup a day that will convert into 50 billion U.S. dollars. Truly, coffee is the black gold on the global marketplace.

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