A familiar theme for several major commodities entering 2020 is a supply shrinkage, which many of them are experiencing. Among them is coffee, and this particular commodity will face supply challenges in the year ahead. In this report, I'll make the case that diminishing supply, coupled with rising global consumption, will eventually lift coffee prices in the coming months.
Processed coffee beans are the world's most traded commodity after oil, and the global importance of coffee can't be understated. While coffee futures tend to be overlooked by many commodity traders, coffee is known to be