Coffee processors in the United States, the world's largest consumer of the beverage, are reporting significant cost increases in their operations, mostly related to transportation, and expect to raise retail prices soon. Mid-sized and smaller roasters, particularly specialty coffee companies, have been hit hardest, company executives said, but even larger companies such as Peet's and JM Smucker Co say they are coping with higher costs. Other U.S. business sectors also face shipping inflation.
Two commodities brokers say data the London Metal Exchange is using to support its proposal to shut its trading floor for good exaggerates the increase in the use of electronic platforms during coronavirus lockdowns. Sucden Financial and StoneX Financial, which oppose the end of so-called ring trading at the 144-year-old exchange, say data used by the LME in a presentation does not take into account electronic trading before floor trading was suspended in March. The row highlights a long-running battle between modernists and traditionalists over the future of the LME ring, the last open-outcry trading floor left in Europe after other exchanges for everything from oil to stocks to cocoa all moved online.
SINGAPORE (Reuters) -Global commodity markets ended 2020 on a strong note, with recovering demand and widespread stimulus packages buoying prices after a roller coaster ride caused by the global coronavirus pandemic. Rollouts of vaccines to combat the virus and trillions of dollars' in fiscal support are expected to boost investment and spending in 2021, spurring demand for raw materials from oil to copper. "It's been a tumultuous year for the commodity market, as the oil meltdown in March changed how we measure and gauge risk in the entire commodity sphere," Stephen Innes, chief global market strategist at brokerage Axi, told Reuters.