Coffee futures move higher with Brazil supply forecast lowered

|By:, SA News Editor

Prices for Arabica coffee move higher as concerns about dry weather in Brazil mount.

Brazil's National Coffee Council lowered its forecast for this season's harvest to 40.1M-43.3M bags from 44M bags.

It's not sure bet that Starbucks (SBUX -1.3%) will pass on any sustained price increase to consumers this year. The company reportedly lowered prices at some of its stores last week in a move that might have been a response to McDonald's free coffee week. CEO Howard Schultz has also been vocal about holding off on price increases.

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