A perfect storm of rising consumption and a bad harvest year has set coffee prizes ablaze.
The iPath DJ-UBS Coffee ETN (JO) has jumped around 72% since the beginning of the year, making it among the top performing single commodity ETPs.
Consumption of coffee, especially in emerging markets, is expected to grow twice as fast compared to developed countries like Italy and the U.S., according to the International Coffee Organization. Big coffee exporting countries like Brazil, Colombia and Vietnam are keeping more of their coffee crop at home for local residents. And large coffee chains have taken notice.