Robusta Coffee Beats Arabica as Folgers Cut Prices: Commodities
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Robusta is beating arabica for the first time in four years as roasters use more of the cheaper grade and farmers reap fewer beans in Vietnam, the top grower.
While robusta, used in espresso and instant coffee, typically costs less than the arabica used to make specialty drinks by retailers including Starbucks Corp., its discount has narrowed to 73 cents a pound, from 145 cents at the end of 2011. The spread will contract to 55 cents by the end of the year, the lowest since July 2009, as demand increases to a record, the average of 10 trader estimates compiled by Bloomberg shows.