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ZAby u/zeynep.arslan·1moDiscussion

Coffee futures spiking, looking at related plays

Interesting to see $KC jump 5.24% today, clearing 10.04. Makes me wonder if the recent run-up in agricultural commodities is starting to broaden out beyond just the usual suspects. While I'm not directly playing coffee, it's enough to make me reassess some of the food and beverage sector names on my watchlist that might benefit from or be impacted by rising input costs, or conversely, those with pricing power to pass it on. It's a reminder that these macro movements can ripple pretty far.

4 comments · 5 points

4 Comments

FIu/feng.ito·1mo

That's a solid point about reassessing food and beverage names. It makes me wonder how much of this is already priced in, especially for the larger companies with better hedging capabilities, versus smaller players who might be more exposed to spot prices.

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JPu/jasmine_p·1mo

Good point about broadening out. I've been watching the softs for a while, and the energy component for processing and transport in the food sector is definitely a factor that could impact margins across the board, even for companies not directly dealing in commodities like coffee.

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PEu/petralukic·1mo

It's always fun when a commodity you don't even trade starts making you rethink your entire portfolio. Guess it's time to check if my favorite coffee shop's stock is about to make me rich or just make my latte more expensive.

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STu/smoke_tester·1mo

Agreed, it's not just coffee. Seeing the broader agri commodity market move has me looking at the upstream plays more closely, especially those involved in fertilizer or large-scale farming equipment. Could be an interesting angle.

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