So a scenario today the market is at 2.54 (which at time of writing it is). I want to buy a contact for coffee today then I will pay 2.54. But should I want to protect myself against what I think its a rising market I can buy coffee for a premium to the market, for this case we will say 7 cents, that will cover the costs of insurance and keeping it in the warehouse so paying $2.61.
If the market drops I get left with coffee contract costing 2.61, but have protected themselves against swings so can offer a stable price to customers. But should the market rise, I can either use that contract still or sell it and make a profit.
The specifics for fluctuating coffee prices can be found on CNN's Money Watch. Most of us aren't coffee roasters, at least not commercially. We don't track coffee's price by the pound. We can, however notice price increases every 2 weeks-month, or however often we return to the coffee aisle at the grocery store. My argument for buying specialty right now is found in an unlikely place:
So, in this [coffee] tight economy, you may just be better of buying premium beans. The cheap stuff is getting pricier anyway. Lord, thank You for the interconnectedness of life and people. It's an amazing thing to see just how significant other people's lives are to our own. I pray we take this reality to heart and live it out daily, placing others at the front, since their lives are integral to ours. Keep me head deflated and on straight.