Originally Posted by Samir
Are there any coffee drinkers here? If yes, you may have noticed there are new coffee shops opening up every day all over the U.S. and in fact, all over the world. While this is happening, coffee beans are trading at the lowest prices seen in the last 14 years. There are some valid reasons for this such as Brazil, which is the largest producer of Arabica coffee beans, had a bumper crop last year and produced more coffee than it ever did. When supply outstrips demand, prices fall but this time the prices have fallen so much that farmers have been forced to abandon their crops in droves.
I think all that is about to change. Brazil has been experiencing dry weather and there are good chances o El Niņo hitting this year which could be devastating. Also on the currency end, the Dollar seems to be retreating which is good because a strong dollar hurts most commodities.
So how do I plan to make money out of this? I just bought one contract of Coffee Futures for close to $3000. Current price of coffee is 102.30. If it goes to 103.30, that's $375 profit. I expect my money to at least double by the end of this month and quadruple by the end of Feb. You can follow the price of Coffee here: https://www.barchart.com/futures/quotes/KCH19
If I am wrong, I will lose $3000. No risk = No reward. Educated risk = Big reward.
Good for you Samir.
Shawn Hackett is still bullish on coffee. My old classmate, Dennis Gartman, as seen on MSNBC, is a commodities expert, you might want to check out his newseltter, he offers a free trial. He too, keeps an eye on the weather in commodity crop countries.
I hope you guessed right.
I think, I'll play along on paper this month, only instead of 3k into coffee, I'll put my 3k of monopoly money into the LOTTERY. Could lose it all, but, could turn 1 dollar into $100,000.00 in the Ohio Rolling Cash 5 game.
3 thousand for 30 days would be 100 bux a day. Should I post my pics?
PS. Dennis has done pretty, pretty, pretty well in his gambling efforts.