Coffee is about to start a bull market. This bear market will turn into a rip roaring bull market. Prices have fallen to a near 15 year low.
Depending on the variety of coffee, coffee beans from seeds to cup can take anywhere from 5-10 years. Coffee producers are struggling from the low prices. Production has increased year over year in South America for the past 5 years. The rest of the producing countries are flat. The demand side is where the action is going to be.
China is about to upset the supply and demand equations for coffee. Take a look at the YoY (Year-over-Year) change.
Asia is going to catch up with Europe in coffee consumption. Prices are in the dumps. Coffee producers are struggling. This is a recipe for a bull market.