Japan, the globe's third-largest economy, is devoting efforts to widening cooperation with alternate coffee purveyors in Africa as part of an effort to encourage cooperation, according to the nation's trade organization.
Bloomberg reports Japan will make more purchases of the soft commodity from nations such as Uganda, Rwanda, Malawi and Cameroon, according to an official at the Japan External Trade Organization. Japan typically acquires its coffee from the African nations of Ethiopia, Kenya and Tanzania while its other main suppliers are Brazil, Costa Rica and Jamaica.
"As part of cooperation with African countries we want to venture into new markets for coffee," Toyokazu Fukuyama told the news service. "We have started and we want to build on the small level from these countries."
The International Coffee Organization reports Japan drinks 84,000 metric tons of coffee per year, which breaks down to about 3.75 pounds per capita.
Just before 1 p.m. on Thursday, coffee futures were up 2.52 percent, a 0.066 cent increase to $2.682 per pound.
Risk Disclosure
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.