THUNDER BAY – The price of coffee has been climbing. Tim Hortons has announced that the price of a cup of coffee in their restaurants will go up by about ten cents.
The price of coffee has gone up this year. A pound of coffee can brew about forty cups of coffee.
It is very likely that the price increase at Tim Hortons will only be the first increase in the price of coffee at popular outlets. Starbucks and Robins are likely to follow suit.
The overall price increase for coffee commodities is due in part to a dry season in Brazil. The Futures Market for coffee prices are going to reflect what investors feel will be the results of those conditions.
This comes after estimates that Indonesian production might be only 8.8 million bags this year from the USDA Attache in Jakarta.
The Robusta crop in Vietnam is still big and producers there are increasing offer volumes as the harvest gets underway and starts to expand. Major roasters in Europe and the US remain active buyers there. The harvests in much of Southeast Asia are underway amid generally good conditions and production ideas are high.
Central America and northern South America production results offer a mixed message for investors and consumers this year. There is a problem in Brazil, but the expected harvest in
Colombia should be very good.
Coffee is one of the most traded commodities on earth, oil is the most traded commodity on earth.