Coffee and Sugar Prices News in the World

Likes sugar and coffee commodities, coffee prices are causing hardships for other coffee companies, and that impacts everyone down the line including the consumers buying coffee. But this morning we learn of another major story that could impact a conglomerate in the coffee industry - Green Mountain Coffee.

The Securities and Exchange Commission has requested documents and data from Green Mountain Coffee Roasters related to an inquiry into how it accounts for revenue. The news sent the company's shares tumbling nearly 10 percent in aftermarket trading.

The Waterbury, Vt., company says it received the request from the SEC's enforcement division on Sept. 20. In a filing with regulators, the company said it thinks the inquiry concerns its revenue accounting practices and its relationship with a vendor.

Prices of commodities like condiments and spices, eggs, fish, meat, tea, wheat, pulses and coffee rose by 18 percent in the one year between August 2009 and 2010, an industry lobby says.

In the same period, the per capita income of an average Indian rose by 10.4 percent - Rs.4,404 - from Rs.40,141 in August 2009, the study by the Associated Chamber of Commerce and Industry of India (Assocham) adds.

The study says that the rise in prices of essential commodities and per capita income is utterly disproportionate.

The prices of condiments witnessed extremely high volatility - 40 percent - between August 2009 and August 2010.

The survey found that the per capita consumption of condiments and spices in India is on the rise following a change in food habits. Winter, the season of weddings in north India along with Christmas and New Year celebrations, may also lead to an upsurge in the demand for spices.

'The good demand due to upcoming festivals such as Navratras, Dussehra and Diwali, has resulted in condiments and spices prices rising during the festive season,' said Assocham secretary general D.S. Rawat.

Prices of eggs, fish and meat also rose over 27 percent between August 2009 and August 2010.

During this period, milk prices increased by 26 percent. Prices of tea increased by 11 percent, while meat prices have increased by 10 percent.

Coffee prices increased by over seven percent during the period. This is because of the anticipated tight supplies that would be just enough to satisfy the growing demand.

Sugar prices?jumped to the highest price in almost eight months on concern that demand will outstrip supplies after adverse weather damaged crops in Brazil, the world?s biggest producer. Coffee and cocoa also climbed.

Brazil will harvest 3.2 percent less sugar cane than previously estimated in the year that began May 1, the U.S. Department of Agriculture said this week. The U.S. will use 115,000 metric tons more of the sweetener this season because of ?strong demand for imported sugar,? the USDA said today.

?Demand is really strong for Brazilian sugar,? said Phil Streible, a senior-market strategist at Lind-Waldock, a broker in Chicago.

Raw sugar for March delivery climbed 1.16 cents, or 4.6 percent, to settle at 26.32 cents a pound at 2 p.m. on ICE Futures U.S. in New York. Prices jumped 13 percent this week, the most since August 2008.

Earlier, the price touched 26.68 cents, the highest level since Feb. 17. The commodity may rise to 30 cents in the next week, Streible said. Sugar has gained 83 percent since June 1.

Falling U.S. corn supplies will push sugar prices higher as demand increases from fuel makers, Streible said. The U.S. corn crop will be 3.8 percent smaller than forecast a month ago, the USDA said today.

Lower corn production will ?drive ethanol prices higher and that will roll over to the sugar market,? Streible said.

In London, refined-sugar futures for December delivery gained $27.80, or 4.3 percent, to settle at $677.60 a metric ton on NYSE Liffe at 5:30 p.m. local time.

Arabica-coffee futures for December delivery rose 8.7 cents, or 5 percent, to $1.8215 a pound in New York. Prices jumped 0.6 percent this week. On NYSE Liffe, robusta-coffee futures for November delivery advanced 2.1 percent to settle at $1,655 a ton in London.

Cocoa futures for December delivery gained $63, or 2.3 percent, to settle at $2,803 a ton in New York. The chocolate ingredient was up 0.7 percent for the week. In London, December- delivery cocoa rose 1.6 percent to 1,870 pounds ($2,982) a ton.