Coffee Prices Surge, Traders Explore New Hedging Strategies

Reported about 23 hours ago

As coffee prices skyrocket, with arabica futures rising approximately 70% this year, traders face significant cash flow pressures and are seeking alternative hedging strategies to manage risks. With margin calls becoming more frequent and burdensome, many are turning to options, liquidity swaps, and off-exchange solutions to alleviate the financial strain caused by volatile price fluctuations. This shift reflects the growing liquidity challenges in the market, prompting traders to adjust their traditional practices.

Source: YAHOO

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