HomeRoast Digest


Topic: :+Houston is new Green Coffee port (2 msgs / 64 lines)
1) From: joe frabosilio
Hi Charlie,
	You had a lot of questions for me, so if I miss any please don't think I'm 
ignoring them.  I think it is safe for me to say that you know 110% more 
than I when it comes coffee beans, process, etc.
	My thoughts are that the problems that the coffee producing countries are 
having.  The emotion of fear of not having enough coffee for sale and 
trouble governments will raise prices.  This is all my opinion.  If you 
watch Light Crude or Unleaded Gasoline with the problems with IRAQ.  The 
rise in price is all emotion.  Now back to coffee.
Yes, futures contracts are paying a little more than current.  Example the 
March 2003 contract KCH3 is approx. 10-13 cents less than the March 2004 
contracts KCK4. If the farmer locks in the rate of .75 cents for delevery 
on March 2004 and the current price is $1.75 (example).  The farmer has to 
sell it for .75.
Farmers taught me how this system works.  The farmers you know should be 
watching the futures market daily, they might be.  I would hold back some 
beans, the farmers have nothing to lose.
	How does this effect homeroasters?  The price homeroasters are paying 
today could double or triple in the near future.
IMO,
Joe Frabosilio
homeroast mailing listhttp://lists.sweetmarias.com/mailman/listinfo/homeroast

2) From: Oaxaca Charlie
 Hi Joe, I'll try and make this short. The coffee farmers I
know, with a few exceptions, have no running water or
electricity, let alone internet access to check the prices of
coffee futures. The futures  prices may run up and down on
speculation due to fears of future supply shortages, but those
enormous warehouses of coffee in New Orleans and New York will
keep the prices that buyers in Mexico pay pretty low for some
time unless a temporary panic becomes long term. If they (the
growers)could sell at a "blip" up to 80 or 90 cents a lb (in New
York) they would still be commiting to sell at a loss. What they
have to lose by holding back now is next month's medical or food
expenses. If the price of coffee doubles by next year-which it
should(but won't)-it still should only raise the price that
homeroasters pay by about 75 cents a lb. The rest of our costs
are the domestic expenses the sellers here have. IMO ;o)
Charlie
--- joe frabosilio  wrote:
<Snip>
=====
Do you Yahoo!?
Yahoo! Tax Center - forms, calculators, tips, morehttp://lists.sweetmarias.com/mailman/listinfo/homeroast">http://taxes.yahoo.com/homeroast mailing listhttp://lists.sweetmarias.com/mailman/listinfo/homeroast


HomeRoast Digest