As of today, the C market closed for July 08 at 136.35.  Still above where we have been resting comfortably for the past years, but down a bit from the heights of the past month or two.  All speculation moves - nothing firm due to physical conditions which might affect coffee pricing.  Some holdouts amongst growers/exporters for outright price contracts on deliveries, but everyone is rolling with the flow. 

Due to current increased prices for oil, expect higher delivery costs, both ocean freight (which has doubled in less than 2 years) and commercial trucking freight fuel surcharges for movement from our warehouse to your shop. 

We are entering the Brazil frost season, although much of the coffee is currently grown North of where it could be damaged.  There is always, especially with our whacky weather these days, the possibility of a freak, damaging cold event.  One thing you can rest certain of: Anything close will result in the Brazilians getting the word out to cause or, shall I say help create, price fluctuations in their favor... 

This will be an interesting next several months/years as the investment funds have again become entrenched in commodities.  As always, we will keep you informed of changes in the market as they arise.  Happy Roasting.

In late July 2007, Andrew and Mike made a trip to New York City for business.  While there, we were able to visit the coffee trading floor at the New York Mercantile Exchange in lower Manhattan.  All coffee contracts traded at the outcry are traded here.  It was the second visit to the trading floor for Andrew, and the first for Mike.  Andrew had visited the NY "Merc," as it is called, when it was housed at the base of the World Trade Center prior to 9/11.  Destroyed by the collapse of the twin towers, all trading functions were moved off-site until this building was able to house the trading operations.  It was quite the scene to watch as contracts (such as those we trade) were executed through shouts, screams and hand gestures.  Talking with several floor traders reveals that the new electronic trading (ICE) may prove the death of outcry trading.  Both Andrew and I sincerely hope that is not the case as the contract traders add the much-needed human element to the trading system.   

POST SCRIPT:  As of several months ago, this contract outcry trading platform has been closed and replaced with the ICE electronic trading platform.   Another change that is sold as progress... We sincerely hope that all the traders land on their feet.  They are an intelligent, hard-working bunch.  We wish them the best.