Hackett Advisors in the News

By Claudia Carpenter - Dec 20, 2010 1:11 AM ET

Arabica Coffee May Extend Gains to $4 a Pound in 1st Quarter, Hackett Says

Arabica coffee prices may be set for a “straight up vertical spike” to a record $4 a pound by the end of the first quarter with daily gains of 50 cents a pound after climbing to a 13-year high last week, researcher Shawn Hackett said.

Coffee is no longer a “value commodity” and roasters are facing a “panic stricken demand rationing orgy,” Hackett, president of Hackett Financial Advisors Inc. in Boynton Beach, Florida, wrote in a report dated Dec. 18. Prices for robusta coffee traded in London may climb to $2,500 a metric ton on rising demand from Asia and lack of production growth from Vietnam, the world’s largest grower of the beans, Hackett said by e-mail yesterday.

Rains in Latin America will likely keep coffee production from exceeding output for the last two years, according to Hackett. Arabica coffee will probably end the year at $3 a pound, Hackett said.

Coffee futures in New York on Dec. 17 jumped to the 13-year high of $2.267 a pound. Robusta coffee in London closed the week at $1,986 a ton.

Rice, cocoa, lumber, milk and natural gas are commodities that still have “pockets of value,” according to Hackett. The Continuous Commodity Index of 17 raw materials futures will probably climb to a record by year-end, he said in yesterday’s e-mail. The index closed on Dec. 17 at 603.35 and the high is 615.04 on July 3, 2008, according to data on Bloomberg.


All personal information provided to Hackett Financial Advisors, Inc. will remain private and confidential and not be sold to anyone without your express written permission. There is substantial risk of loss in trading futures and options on futures.
Risk/Disclosure Statement | Refund Policy
© Copyright 2008 - 2011, Hackett Financial Advisors, Inc.