Forecast: Coffee prices to push higher

Strong local demand from coffee-producing nations Brazil, Vietnam, and Colombia could help keep coffee prices elevated this year.

Overall coffee demand is expected to hit a record this year due in part to rising incomes.

Though the upsurge in demand is primarily for the lower-priced bean varities, there is also a slow global shift in mix toward the higher-priced Arabica beans under way.

Starbucks (SBUX +0.6%), Dunkin Brands (DNKN +0.3%), Kraft Foods Group (KRFT -0.3%), and J.M. Smucker (SJM +0.1%) have all increased prices on coffee this year.

Related ETF: JO

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Comments (4)
  • 50 cent it is
    , contributor
    Comments (1453) | Send Message
    Higher commodity prices are a good excuse for Kraft to raise prices and make it stick.
    When beans come down ,we keep our pricing.
    This is a good thing
    4 Aug 2014, 02:23 PM Reply Like
  • horseman
    , contributor
    Comments (228) | Send Message
    As I've said (documented) for several months now, JO/coffee will see $ 50.00 before year end. The weather WILL-BE a "killer" on production in key geographic locations. Wheat may well also be very iffy.
    4 Aug 2014, 03:49 PM Reply Like
  • tripitin
    , contributor
    Comments (5) | Send Message
    Agree. What is interesting is the back and forth between the "experts". Many have said that the decline in production in Brazil is dramatic (the situation was 1st observed back in Jan), while others believe that the problem has been greatly exaggerated. We will soon have an answer, but the price of arabica seems to be going in the up direction...
    4 Aug 2014, 04:45 PM Reply Like
  • hammilldavid
    , contributor
    Comments (4) | Send Message
    Whats your suggestion on wheat? Another ETF?
    5 Aug 2014, 11:20 AM Reply Like
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