S&P 500
7,614.00
-0.11%
Dow Jones
51,326.00
-0.09%
Nasdaq 100
30,630.60
-0.28%
Russell 2000
2,927.38
-0.19%
FTSE 100
10,382.60
-0.05%
Nikkei 225
68,184.20
+1.01%

Commodities & Metals

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

Photo of Paul Ausick
By Paul Ausick Published
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

DISCLOSURE:
INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA(www.finra.org)/SIPC(www.sipc.org). Advisory services are offered by SoFi Wealth LLC, an SEC-registered investment adviser. Information about SoFi Wealth’s advisory operations, services, and fees is set forth in SoFi Wealth’s current Form ADV Part 2 (Brochure), a copy of which is available upon request and at www.adviserinfo.sec.gov. Probability of Member receiving $1,000 is a probability of 0.026%; If you don’t make a selection in 30 days, you’ll no longer qualify for the promo. Customer must fund their account with a minimum of $50.00 to qualify. Other fees, such as exchange fees, may apply. Please view our fee disclosure to view a full listing of fees. Investing in alternative investments and/or strategies may not be suitable for all investors and involves unique risks, including the risk of loss. An investor should consider their individual circumstances and any investment information, such as a prospectus, prior to investing. Interval Funds are illiquid instruments, the ability to trade on your timeline may be restricted. Brokerage and Active investing products offered through SoFi Securities LLC, Member FINRA(www.finra.org) /SIPC(www.sipc.org). There are limitations with fractional shares to consider before investing. During market hours fractional share orders are transmitted immediately in the order received. There may be system delays from receipt of your order until execution and market conditions may adversely impact execution prices. Outside of market hours orders are received on a not held basis and will be aggregated for each security then executed in the morning trade window of the next business day at market open. Share will be delivered at an average price received for executing the securities through a single batched order. Fractional shares may not be transferred to another firm. Fractional shares will be sold when a transfer or closure request is initiated. Please consider that selling securities is a taxable event. Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire investment Before trading options please review the Characteristics and Risks of Standardized Options  Investing in an Initial Public Offering (IPO) involves substantial risk, including the risk of loss. Further, there are a variety of risk factors to consider when investing in an IPO, including but not limited to, unproven management, significant debt, and lack of operating history. For a comprehensive discussion of these risks please refer to SoFi Securities’ IPO Risk Disclosure Statement This should not be considered a recommendation to participate in IPOs and investors should carefully read the offering prospectus to determine whether an offering is consistent with their investment objectives, risk tolerance, and financial situation. New offerings generally have high demand and there are a limited number of shares available for distribution to participants. Many customers may not be allocated shares and share allocations may be significantly smaller than the shares requested in the customer’s initial offer (Indication of Interest). For more information on the allocation process please visit IPO Allocation.
Follow 24/7 Wall St. on Google
Photo of Paul Ausick
About the Author Paul Ausick →

Paul Ausick has been writing for 247Wallst.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…

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 |

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…

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

Hewlett Packard Enterprise
HPE • Vol: 153,197,465
Enphase Energy
ENPH • Vol: 8,360,053
Corning
GLW • Vol: 18,152,646
Alexandria Real Estate Equities
ARE • Vol: 4,337,015
Aptiv
APTV • Vol: 6,761,325

Top Losing Stocks

Trade Desk
TTD • Vol: 21,905,513
Intuit
INTU • Vol: 7,383,018
Coterra Energy
CTRA • Vol: 73,319,495
Cboe Global Markets
CBOE • Vol: 5,000,011
HP
HPQ • Vol: 29,259,826