Gourmet Coffee May Cheapen, Helping Starbucks: Chart of Day
This article is for subscribers only.
Mild-tasting coffee used by Starbucks Corp. and Green Mountain Coffee Roasters Inc. is poised to cheapen versus its bitter-tasting competitor as production of so-called arabica beans increases to a record.
The CHART OF THE DAY shows the premium of arabica over robusta widened 61 percent in the past year to $2,282.61 a metric ton as investors raised bets on concern rains in Colombia, the biggest grower of the variety after Brazil, would damage the crop. That’s almost double the average $1,286.13 a ton since January 2008, when a new contract started trading in London.