The Single Best Commodity Play of 2013?
Big money is going long on coffee with expectations that prices will rebound next year.
JO Coffee ETF Vs. Starbucks (NASDAQ:SBUX) Share Price
Lower coffee bean prices has helped lift share prices of coffee companies like Starbucks, Coffee Holdings Co. (NASDAQ:JVA), Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR), and Peet's Coffee & Tea (NASDAQ:PEET). But cheap coffee may not be around that much longer and the lower earnings for coffee brewers may be closer than most may think.
2013 Caffeine Conclusion
In short, I have been watching coffee prices for a bottoming pattern for months and I now feel it is getting really close to a bottom and it could be a great trade and investment in the new year. As for companies like Starbucks, it will likely not have much of an affect on the bottom line until the second half of the year though it is something to keep an eye on during earning seasons.
Editor's Note: Chris Vermeulen offers more content at his sites, TheGoldAndOilGuy.com and Traders Video Playbook.
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