Are you one among the millions who start the day with a cup of coffee? Then here is an interesting news for you. Falling oil prices are definitely a concern for many. While the oil traders are busy whining about the falling oil prices, it is time to worry about the cup of coffee which you are holding in your hands now. Yes! We mean it. Coffee prices are set to skyrocket from now.
Here is a point where you have to worry about the coffee price. If you look at the statistics, coffee prices have seen a huge decline over the past 5 years, together with most other commodities. No surprise that lower coffee prices have benefited companies like Starbucks and Dunkin Brands due to much lower input costs.
Similar to oil prices getting bottomed up – the coffee prices have bottomed and it is expected to witness an uptrend. The next time when you enter a coffee shop, don’t be surprised to see a phenomenal increase in what you pay for a cappuccino.
While coffee commodity prices have plunged, companies such as Starbucks (NASDAQ:SBUX) and Dunkin Donuts (NASDAQ:DNKN) have benefited from the much lower input costs. The graph stands as a proof of the pudding.
Why did the Coffee Price fall first of all?
Obviously, decrease in global demand as well as an overall threat of deflation are the main reasons for fall in coffee prices.
Now, either you invest in oil-related stocks or buy shares, it really doesn’t matter as long as the technology and innovation will take care to drill new oil fields. Why not? Invest in coffee now! Your shares/stocks would definitely see an uptrend soon.
After reading this article, whether you invest in coffee or not, we are sure that you will get up from your seats to grab a cuppa COFFEE!
Source: finviz.com & seekingalpha
