Latest News
Coffee Prices Rise
Wall Street Journal
Tight Markets Seen for Coffee, Sugar, Cotton
By Leslie Josephs, New York
A scarcity of commodities such as cotton, sugar and coffee that propelled prices to historic highs late in 2010 is expected to continue into 2011, and it could mean more prices increases for consumers.
Coffee prices, which hit their highest prices since mid 1997 this year, are also expected to stay high. The emergence of new coffee drinkers in Brazil and China and sustained demand in North America and Europe through the economic downturn were met with lower output from top producers of the prized, mild washed arabica beans. Torrential rain tore through and Central America this year.
Coffee futures rose 77% this year, ending 2010 at $2.4050 a pound.
The higher prices have led Starbucks Corp., Kraft Foods Inc. and Farmer Bros. Corp. to raise prices for some of their products this year, and more increases may be on the way for other companies.
"While many of our franchises have held their prices steady for more than three years, we expect that some may make modest adjustments to coffee prices in their restaurants," said a spokeswoman for Dunkin' Brands Inc., which owns Dunkin' Donuts. The company uses only arabica beans.
In December, consistently low supplies of arabica coffee prompted the Intercontinental Exchange Inc. to include arabica beans from Brazil, the world's top producer, on its list of grower nations for the benchmark "C" contract. The deal, one decade in the making, is expected to boost liquidity in the market and will take effect in March 2013.
Tight Markets Seen for Coffee, Sugar, Cotton
By Leslie Josephs, New York
A scarcity of commodities such as cotton, sugar and coffee that propelled prices to historic highs late in 2010 is expected to continue into 2011, and it could mean more prices increases for consumers.
Coffee prices, which hit their highest prices since mid 1997 this year, are also expected to stay high. The emergence of new coffee drinkers in Brazil and China and sustained demand in North America and Europe through the economic downturn were met with lower output from top producers of the prized, mild washed arabica beans. Torrential rain tore through and Central America this year.
Coffee futures rose 77% this year, ending 2010 at $2.4050 a pound.
The higher prices have led Starbucks Corp., Kraft Foods Inc. and Farmer Bros. Corp. to raise prices for some of their products this year, and more increases may be on the way for other companies.
"While many of our franchises have held their prices steady for more than three years, we expect that some may make modest adjustments to coffee prices in their restaurants," said a spokeswoman for Dunkin' Brands Inc., which owns Dunkin' Donuts. The company uses only arabica beans.
In December, consistently low supplies of arabica coffee prompted the Intercontinental Exchange Inc. to include arabica beans from Brazil, the world's top producer, on its list of grower nations for the benchmark "C" contract. The deal, one decade in the making, is expected to boost liquidity in the market and will take effect in March 2013.
posted by Café Excellence at
9:09 AM Tuesday, January 4, 2011
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]