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Coffee retailers may brew better margins on beans surplus

Singapore

CONSUMERS can't tear themselves away from that cup of joe for its caffeine kick - be it from their "home offices" or at cafes that may now have opened up with lockdown measures easing here and around the world.

This relatively inelastic demand for coffee, combined with the expected over-supply of coffee beans, may brew a stronger margin for coffee retailers and processors.

This comes as the prices of beans have softened by 17.3 per cent since the start of the year.

To be sure, coffee prices have been volatile this year, going from as low as US$95.60 per pound in June to as high as US$134 per pound in September. Coffee prices have already "come off their lows" as the global economy shows...

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