S&P 500
7,226.20
+0.01%
Dow Jones
49,494.60
-0.62%
Nasdaq 100
27,685.40
+0.66%
Russell 2000
2,804.78
-0.02%
FTSE 100
10,364.50
0.00%
Nikkei 225
59,260.50
-0.78%

Commodities & Metals

Starbucks Hits New High as Coffee Prices Stay Low (SBUX, DNKN)

Photo of Paul Ausick
By Paul Ausick Published
Follow 24/7 Wall St. on Google
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Thinkstock
Starbucks Corp. (NASDAQ: SBUX) raised the bar this morning, posting a new 52-week high of $53.37. Almost certainly the share price rise is due to the continued low prices for coffee and the prospect that those low prices will continue at least through mid-year. Dunkin’ Brands Group Inc. (NASDAQ: DNKN) came within pennies of its 52-week high as well.

Coffee futures are well below $2/pound, at around $1.83, far from the price of over $3/pound reached last may. This year’s crop from Brazil is better than expected and is selling at a discount of $0.10/pound in New York according to Bloomberg News.

The Brazilian crop through September next year is expected to rise to a record of more than 52 million 132-pound bags.

Starbucks raised its prices when coffee prices were high, but very likely doesn’t plan to lower them now that prices have fallen. Shocking.

Paul Ausick

Photo of Paul Ausick
About the Author Paul Ausick →

Paul Ausick has been writing for a673b.bigscoots-temp.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.

He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.

Continue Reading

Paul Ausick |

Coffee Rises, but Starbucks Hedges

Coffee was trading at around $2.20 a pound Tuesday morning, its highest price in two and a half years.
Paul Ausick |

Coffee Prices to Rise Again

ThinkstockAs of the end of trading on Tuesday, coffee closed on the ICE at about $1.84 a pound, down from…
Jon C. Ogg |

Coffee Conundrum: Coffee Shelf Life vs. Corporate Finance (ICE, KFT, SBUX, FARM, GMCR, PEET, CBOU, JO)

ThinkstockCoffee prices have been rising, primarily as a result of a projected failure in the Colombian crop due to heavy…
Paul Ausick |

Rising Coffee Prices Threaten Profits

ThinkstockSince the end of January, coffee futures have jumped from around $1.20 a pound to trade near $2.16 a pound…
Jon C. Ogg |

Coffee Starts to Weigh on Roasters and Retailers (SJM, SBUX, GMCR, KFT, MCD, JO, CAFE)

ThinkstockAs is the case with crude oil, people just can’t seem to get enough coffee. Global consumption of coffee rose…
Paul Ausick |

Starbucks to Boost Coffee Drink Prices Tuesday Morning

courtesy of Starbucks Corp.Starbucks Corp. (NASDAQ: SBUX) said on Monday that it plans to raise prices on coffee drinks by…
cgblaine22 |

Why You Should Expect Higher Coffee Prices Ahead

The futures price of coffee has basically doubled since early November, leaving one to ask how long can, say, Starbucks…
Paul Ausick |

Folgers, Dunkin’ Brand Coffee Prices Rise 9%

After hitting a peak of around $2.15 a pound in mid-April, coffee prices have moderated to around $1.70 a pound…
Paul Ausick |

Starbucks Will Have to Raise Prices

courtesy of Starbucks Corp.Coffee prices started spiking in late January, from less than $1.20 a pound to near $2.15 a…

Top Gaining Stocks

Cboe Global Markets
CBOE • Vol: 1,568,143
New Pluto Global
PSKY • Vol: 12,285,993
Seagate Technology
STX • Vol: 7,378,346
Oracle
ORCL • Vol: 26,317,675
Datadog
DDOG • Vol: 6,247,779

Top Losing Stocks

LKQ
LKQ • Vol: 4,367,433
Clorox
CLX • Vol: 13,260,523
Stryker
SYK • Vol: 4,519,455
Mohawk Industries
MHK • Vol: 1,859,865
Amgen
AMGN • Vol: 3,818,618