Even we consider this an atypical year (because of the covid, carryover stocks, lockdowns and recesion) in case of drought scenario at least the market could go over 200.
What is the risk reward ratio for the industry? Wait that nothing is going to happen? What happens if that happens?
Better to hedge at these levels than buy at 180? Sounds pretty logical , isn't it?
Coffee is cheap for the industry and will be cheap also if the market goes to 130.
The situation could get more complicated for this group in case of Funds act first
I do expect this market higher... anytime soon.
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