Senior Editor @ Bloomberg News | Editing, Management, Enterprise
Why are stockpiles of premium coffee beans on the world’s biggest arabica exchange suddenly at their lowest levels since 1999? It's not about supply: Physical coffee supplies are improving, with more arabica beans coming out of top producer Brazil after a bumper crop. It's not about demand: No one's drinking habits have changed THAT rapidly in the last few weeks. (Well, maybe if you just had a newborn...) Instead, experts say it's a sign traders and suppliers are trying to take advantage of a convenient loophole one last time before the Intercontinental Exchange changes its rules. How it works: Some sellers looking to avoid an “age penalty” meant to discourage lengthy coffee storage are known to pull their older beans off the exchange and then resubmit them for a new round of certification, thereby making the coffee appear fresh. It's legal but misleading, and it will be banned as of Dec. 1. It is “almost certain” that anybody holding certified coffee over this past month that could be recertified would do it, said Ryan Delany, the founder and chief analyst at Coffee Trading Academy. “Why would you leave money on the table?” Read more from Ilena Peng: https://lnkd.in/eSfu8MFb #coffee #ags #agriculture #exchange #futures
