Investing in coffee

[QuarterMillionMan]

Does anyone know how to invest in coffee the actual commodity. Look at how much the price has dropped and how we keep paying the same price at retail. Starbucks is making huge profits without dropping its price. If I knew how to invest in coffee I might throw some money at it.

[kv968]

You could use the ETF's JO or CAFE. Both are iPath ETN's issued by Barclays.

JO invests in a single coffee futures contract whereas CAFE may roll into a number of futures contracts. Either way you're exposed to contango or backwardation due to the futures roll so neither will follow the spot price of coffee exactly.

JO is bigger and has more volume(avg. ~108k). Not much, but still way more than CAFE (avg. ~6800).