When the market crashes: A look at Texas coffee stocks
On Friday morning, Texas coffee traders woke to the sound of heavy rain hitting their tables.
The rain was expected to continue, and it did.
The markets had already crashed.
By Monday morning, the Dow Jones Industrial Average and the S&P 500 had each lost half their value, while the Nasdaq had fallen 6%.
The impact of this crisis is already having a profound impact on the way that coffee is sold around the world.
It has hit the world of coffee traders, with the US coffee trade losing some 30% of its value this year.
It is the biggest drop in coffee trade since the financial crisis, and could cause even more damage to the US economy.
In this short interview with Al Jazeera’s David Seltzer, the founder and managing director of the consultancy Altegris, who also works with a coffee trading team in the US, tells us how the coffee crash is affecting coffee trading in the country.
Altegrist says the US is a key market for the coffee sector because of its low-cost nature.
The US is an exporter of coffee, and the coffee market is very competitive in the United States, so if you have a competitive market, then you are able to find opportunities to grow.
It’s not just a coffee industry, but also a food industry, which has a very different distribution network and therefore different costs.
It’s the same for the food and beverage industry.
For the US to compete globally, you need to have a lot of different markets, which is why we have to have coffee markets.
Al Jazeera: What has the market situation been like in Texas in the past two weeks?
David Seltzler: We had a couple of events, which was normal, and then the market crashed.
The US coffee market fell by 30% on Friday morning.
By the afternoon on Monday, it had fallen by 60%.
There were lots of reports of panic in coffee shops, but nothing really like that that was really scary.
But then we had some people in the industry panic, saying that we should not have put coffee on hold, and we should have put the coffee on the market.
We had a few people in our trading team say that they were worried that they would not be able to get coffee back, that they might not get their money back.
Then they were scared to come back.
Altegraise: They were terrified because it was a panic event.
I had a lot more panic.
Al Jazeera: And now we are seeing the effects of this panic in the market?
David: The panic was definitely the worst of the year, because it really hit the coffee industry.
Al Tegris has had a team working for several years in the coffee business in the states, and there is a lot that has changed.
The industry has been affected.
In many cases, there were large coffee companies who were very much in the process of going bankrupt.
Al tegris says it is difficult to put a figure on the number of coffee shops that have been closed.
Al tergres: But it is very, very high.
The coffee companies were not able to survive.
We are talking about large companies with around 300 people, and they are no longer in business.
AlTegris: The number of shops that were closed was quite high, as many of the people who were able to access the coffee would have been forced to pay more money to get their coffee back.
Al tergret: It was a very bad period for coffee in the USA.
Al-Tegrises is one of the most highly regarded coffee traders in the world, so we have a good reputation in the markets and in the international market.
Al Tegriss: It’s difficult to estimate the number, because of the way the markets operate.
The fact is that coffee companies are so small, that you can only see what is happening in the companies, and how much money is being paid to people in terms of the amount of money that is being put into the coffeehouses, so the total amount of losses in coffee companies in the last couple of years is huge.
Al-Tegraise and Seltzers: In a lot, if not all, of these cases, the coffee companies have to repay their debt, which means they are not in business anymore.
Al Tergret is the president of a large coffee trading company in Texas.
AlTergret says there are many reasons why this is happening.
AlTegriss is the vice-president of a company that manages and operates about 3,000 coffeehouses in Texas, and says that many of them are suffering the same type of panic as Altegre.
AlTergres and Siltzer: It started a couple days ago.
The first day of the week, there was a big panic, because people were going out to coffee shops.
They were going to go to a coffee shop, but instead they were going