Coffee prices have risen about 43% in the last three months. This is a 13 year high for the delectable bean.
Coffee for December delivery settled up 2.25 cents at $1.9455 a pound Wednesday after hitting $1.9865 per pound earlier in the day. Trading volume was light, which can exaggerate price movements, according to the Associated Press.
Many people are finding a retail price increase due to the soaring prices of coffee. Some of the brands that have reflected the increase in their retail pricing are owned by the JM Smucker Company including Millstone, Foldgers, Foldgers Gourmet Selections and Dunkin’ Donuts. K-Cup Portion Packs, sold by Green Mountain Coffee Roasters for the Keurig Single-Cup brewing system, are set to rise in price by 10% to 15% next month.
Deb Trevino, spokesperson for Starbucks, insists that their prices will not be affected by the rising price of coffee. The company intends to absorb the extra cost, instead of passing it on to the consumer.
This week’s rally appears to be largely due to speculative trading because fears have eased about weather and supply issues, said Spencer Patton, founder and chief investment officer for hedge fund Steel Vine Investments LLC.