What's Behind the Jolt to Sugar and Coffee ETNs?
Tom Lydon submits:
Are visions of sugar funds dancing in your head? Coffee and sugar exchange traded notes (ETNs) have surged in recent weeks, driven by greater demand and shrinking stockpiles.
- Last Friday, coffee prices closed at their highest price since June 1997 after a 7.5% rally, reports Leslie Josephs of The Wall Street Journal. Coffee prices were pumped after the deluge that hit Colombia, the world’s largest producer of mild washed arabica beans, and poor weather across Central America disrupted supply.
- Bad weather in Australia, lower-than-expected exports from India, the world’s second largest producer of sugar, and weather damage to Florida’s sugarcane crop have also pushed up prices for sugar.