Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

STARBUCKS CORPORATION

(SBUX)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Coffee prices surge as unusual cold threatens Brazilian production

07/26/2021 | 04:47pm EDT

LONDON/NEW YORK, July 26 (Reuters) - Arabica coffee prices rose 10% more on Monday, after jumping nearly 20% last week, to their highest in nearly seven years as unusual cold weather threatens coffee crops in the world's largest producer Brazil.

Severe frosts last week damaged a large part of fields in the main Brazilian coffee belt and a new polar air mass is forecast to move over the same areas later this week, which will be the third strong cold front to hit crops this year.

Coffee trees are extremely sensitive to frost, which can cause severe damage and even kill trees completely. If a farm needs to replant trees, production would take around three years.

Preliminary estimates from the Brazilian government's food supply agency Conab said that last week's frosts had affected 150,000 to 200,000 hectares - about 11% of the country's total arabica crop area.

"This marks the first time since 1994 that the country has experienced such a weather event," coffee trader I & M Smith said in a market update, referring to the July 20 harsh frosts.

Arabica coffee futures prices on ICE rose sharply on Monday, with the September contract climbing to a peak of $2.1520 per lb, the highest for the front month since October 2014.

"The extent of the damage is still unclear, however estimates are now between 5.5 million and 9 million (60 kg) bags, up from 2 million to 3 million last week," said Charles Sargeant, softs and agricultural commodity broker at Britannia Global Markets.

Sargeant was referring to the 2022 Brazilian crop. This year's smaller production has been mostly harvested. A good production next year in Brazil was seen as important in balancing the global supply.

Arabica coffee futures have risen by about 35% since the end of June, raising the prospect that major brands may have to raise prices in the coming weeks.

"Over the last 12 months we have seen a sharp rise in ingredient, freight and other costs, which will require us to take appropriate measures," JDE Peet's, one of the world's largest coffee companies, said in a statement.

"Historically, significant fluctuations in green coffee prices have been reflected in the market and we expect that precedent to continue."

Starbucks and Nestle, which are also among the largest coffee processors and retailers in the world, declined requests for comments regarding possible impacts to the industry and the prospect of reduced availability next season.

Smaller players would certainly suffer, while consumers will have to pay more.

"We have stocks only up to September. We raised prices already three times this year, following the market moves, but the situation remains difficult," said Luciane Carneiro Mendes, a partner at Cafe Carneiro, a small roaster in Brazil.

Coffee prices in Brazil, she said, have risen from 400 reais ($77.30) per 60-kg bag in December to around 800 reais this month, but there are estimates for further increases ahead to around 1.000 reais. (Reporting by Nigel Hunt in London and Marcelo Teixeira in New York Editing by David Goodman, Grant McCool and David Evans)


ę Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
JDE PEET'S N.V. -1.58% 26.22 Real-time Quote.-27.90%
NESTLÉ S.A. -1.38% 109.96 Delayed Quote.6.94%
STARBUCKS CORPORATION -1.63% 111.85 Delayed Quote.6.26%
All news about STARBUCKS CORPORATION
10:30aPipeline operator Enbridge inks deals to produce RNG, hydrogen to meet emissions goals
RE
09/24Consumer Cos Down On Mixed Spending Views -- Consumer Roundup
DJ
09/24TRACKINSIGHT : Vaccination and ease of restrictions energize Travel and Leisure ETFs
TI
09/23YUM CHINA : to Focus on Smaller Stores, Invest More in Lavazza JV in Expansion Drive
MT
09/23STARBUCKS : Yum China, Italy's Lavazza aim to open 1,000 cafes in China by 2025
RE
09/22Wake up and smell the coffee ... made in the United States
RE
09/20STARBUCKS : Stifel Nicolaus Adjusts Starbucks PT to $130 from $135, Maintains Buy Rating
MT
09/17STARBUCKS CORP : Entry into a Material Definitive Agreement, Termination of a Material Def..
AQ
09/17Starbucks Corporation Enters into A New $3.0 Billion Credit Agreement
CI
09/15Starbucks on Pace for Largest Percent Decrease Since January 2021 -- Data Talk
DJ
More news
Analyst Recommendations on STARBUCKS CORPORATION
More recommendations
Financials (USD)
Sales 2021 29 180 M - -
Net income 2021 3 715 M - -
Net Debt 2021 9 051 M - -
P/E ratio 2021 36,6x
Yield 2021 1,60%
Capitalization 134 B 134 B -
EV / Sales 2021 4,90x
EV / Sales 2022 4,48x
Nbr of Employees 349 000
Free-Float 99,8%
Chart STARBUCKS CORPORATION
Duration : Period :
Starbucks Corporation Technical Analysis Chart | SBUX | US8552441094 | MarketScreener
Technical analysis trends STARBUCKS CORPORATION
Short TermMid-TermLong Term
TrendsBearishNeutralBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 34
Last Close Price 113,68 $
Average target price 130,81 $
Spread / Average Target 15,1%
EPS Revisions
Managers and Directors
Kevin R. Johnson President, Chief Executive Officer & Director
Rachel Marie Ruggeri Chief Financial Officer & Executive Vice President
Mellody Louise Hobson Chairman
Gerri Martin-Flickinger Chief Technology Officer & Executive VP
Jeff Wile Chief Information Officer
Sector and Competitors
1st jan.Capi. (M$)
STARBUCKS CORPORATION6.26%134 040
COMPASS GROUP PLC12.73%37 575
DARDEN RESTAURANTS, INC.34.16%20 827
SODEXO11.47%13 176
JUBILANT FOODWORKS LIMITED46.04%7 271
MINOR INTERNATIONAL PUBLIC COMPANY LIMITED25.24%5 032