Plenty of Supply...of Coffee Speculators

High prices of coffee are giving beans to coffee addicts and aficionados alike...

Starbucks chief renews blame on coffee speculators: "

Starbucks Coffee Co Chief Executive Howard Schultz once again laid the blame for surging coffee prices on speculators, saying his chain had no problem getting beans. Arabica coffee futures have rallied over the past nine months to a 34-year high this month at $2.9665 per lb, basis second position. The market initially climbed on fund buying but was sustained by tight supplies of washed beans. Many analysts expect it will soon climb to $3 per lb. “Every supplier that I talk to, every producer, first thing I ask is, ‘Is there any problem with supply and demand?’” Schultz said. They tell him no, he said. Global stocks are at the lowest level since the International Coffee Organization began keeping records in 1965. The ICO has said stocks could fall lower. “I think it's artificial. I think financial speculation has really stepped into the market,” Schultz said at the National Coffee Association meeting on Friday. Coffee consumers will not “respond positively” to higher coffee prices, Schultz added.