Tags: Morning | Cost | Breakfast | Up

Good Morning! The Cost of Your Breakfast Just Went Up

Tuesday, 22 Apr 2014 07:40 PM

The cost of breakfast is poised to increase as coffee futures surge after a Brazilian drought damaged crops and orange-juice prices climb with Florida’s output heading for a 29-year low.

The Bloomberg's 'Chart of the Day' shows that an index comprising New York-traded futures on arabica coffee and orange juice climbed Tuesday to a 25-month high of 378.1, jumping 51 percent this year alone. In the two years that ended 2013, the gauge tumbled 37 percent.

To start this year, Brazil, the world’s top coffee and citrus grower, faced the most severe drought in decades. In Florida, the second-biggest orange grower, a gnat-sized insect spread citrus greening, causing fruit to wither and drop early. Prices for bacon, eggs and milk have also climbed, and surging meat and dairy are helping to spur the fastest gain in U.S. consumer food costs since 2011, government data show.

“Brazil’s crops have been impacted more than we first thought in the wake of drought conditions,” said Ross Colbert, a global beverage-strategist at Rabobank International in New York. “The greening issue is continuing to challenge growers, increasing grove maintenance, and speculators are reacting to that. We could begin to see higher prices for consumers in 30 to 60 days.”

On ICE Futures U.S. this year, arabica coffee has jumped 93 percent to $2.134 a pound, the biggest gain among 24 raw materials in the Standard & Poor’s GSCI Spot Index. Orange juice has climbed 17 percent to $1.6275 a pound. The Bloomberg index of the beverages combines the two prices.

Premium arabica beans are favored by Starbucks Inc., the world’s biggest coffee chain. Coca Cola Co. sells Minute Maid and Simply Orange brand juices, and PepsiCo makes Tropicana.

© Copyright 2017 Bloomberg News. All rights reserved.

 
1Like our page
2Share
Economy
The cost of breakfast is poised to increase as coffee futures surge after a Brazilian drought damaged crops and orange-juice prices climb with Florida's output heading for a 29-year low.
Morning, Cost, Breakfast, Up
283
2014-40-22
Tuesday, 22 Apr 2014 07:40 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved