Look for the price of coffee to perk up

A real eye-opener: A six-year high is anticipated, stemming from smaller crops in Brazil and a steadily growing appetite for lattes

By Claudia Carpenter
Bloomberg News

The price of arabica coffee futures listed on the New York Board of Trade, the world's biggest coffee exchange, will average $1 a pound in 2005, based on the median estimate of 11 analysts and roasters. That's 30 percent higher than 2004. The futures are benchmarks for coffee sold by Procter & Gamble Co.'s Folgers and Kraft Foods Inc.'s Maxwell House brands.
Coffee futures jumped 60 percent in the past year, more than commodities including crude oil, sugar, copper and hogs. Suppliers were squeezed by rising demand from Starbucks Corp. and other buyers at the same time the outlook deteriorated for crops in Brazil, Vietnam and Indonesia. Those countries account for 48 percent of global coffee-bean exports.

More...