Commodity Prices of Coffee Increases on store and houses

Commodity prices for coffee hit a 13-year year high last week, and the increase is starting to show up at stores and coffee houses. Last month, prices rose because of a bad early crop in Central and South America and even concerns over shipping costs related to the Gulf oil blowout.

Prices coffee increases seem to be based more on speculation than supply and demand.
"Sen. Charles Schumer, D-N.Y., says he wants U.S. Trade Representative Ron Kirk to warn some major coffee growers in Brazil and Vietnam not to stockpile their crops. He said that could boost coffee futures contracts even more."

"Last month, the J.M. Smucker Co. imposed an immediate average increase of 9 percent on most of its coffee products under the brand names of Folgers, Dunkin' Donuts, Millstone and Folgers Gourmet Selections.

"Green Mountain Coffee Roasters Inc. plans to raise North American prices 10 percent to 15 percent next month on K-Cup portion packs for the Keurig Single-Cup brewing system.

"Starbucks Corp. spokeswoman Deb Trevino said Wednesday that the company still is planning to absorb the costs, but executives continue to monitor the situation closely.