I'd check the composition of the subindex. It's not like the VIX
Coffee prices take a turn higher
Jo is one of my larger long term positions. The price now is pretty close to what it costs for the farmer to produce coffee. Michael Kors Singapore Sure it can stay this low for a while or even go lower, but the chance of something going wrong with the crop in the next several years is pretty high. When that happens coffee will increase dramatically. Each year it cost the farmer more to grow the coffee. If prices stay where they are now it will make no economic sense for them to Nike Jordan 11 continue growing coffee and will turn the land over to some other use.
I don't know the exact answer. I have read the JO prospectus. The two salient features are that they use something called the "Dow Jones Coffee Subindex" and that it is designed as a note which matches that index less a cumulative 0.75% per year. I find that it's pretty close to the coffee price published on FinViz minus a modest amount (roughly a penny to a penny and a quarter) for the charge that has accumulated over time.
I don't think the roll matters too much if I did, I'd check the composition of the subindex. It's not like the VIX, where the thing you care about (volatility) is dropping as time expires, or the UNG natural gas contract, where everyone in the pits is playing the roll. At least, it's not right now no one cares much about coffee, and I believe the contango/backwardation is pretty flat.
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