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If demand rationing is the only option left to keep price in check then fasten your seat belt
Posted by Admiral
on August 12, 2021, 7:17 am
Coffee demand, history has shown, is extremely price inelastic. If the only answer now is demand rationing inasmuch the forward sales are too large and their is no tangible stock to throw at rising prices, then price has a long way to go in a multi leg multi year bull. Recall Brazil had 20+ million bags when the frosts of 1994 hit. Even in 1997 Brazil had stocks to supply the roaring bull and no multi year forward sales on the books.
KC N1997 DAILY