Poor Farmer

By Ron Day Bloomberg June 8, 2007 Coffee fell in New York after Brazil and Colombia sold beans to take advantage of a three-week rally. Futures had jumped 15 percent since May 1 to a three-month high on June 4. Brazil, the world's biggest coffee grower, and Colombia, the third-largest, are locking in prices after some sales by speculators, said George Saffadi, a trader with Olam Americas Inc. in White Plains, New York. ``Brazil and Colombia are coming to market,'' Saffadi said. ``They have coffee to sell and they are hedging.'' Coffee for July delivery fell 2 cents, or 1.7 percent, to $1.1495 a pound on the New York Board of Trade at 12:24 p.m. Colombia, which is harvesting its smaller mid-crop, is boosting production to meet increased demand from former Soviet Union countries as Brazil's output declines. Brazil's production dropped in the current season after trees entered the slower half of a two-year cycle and dry weather hindered flowering. Vietnam is t...

Bloomberg News via AZ Central Jun. 8, 2007 Starbucks Corp., the world's largest chain of coffee shops, may see sales slow as people increasingly turn to McDonald's Corp. for their daily brew, a Deutsche Bank Securities Inc. analyst said. Marc Greenberg, who is based in New York, cut his target price for Starbucks shares by 14 percent to $32 from $37. He said McDonald's switch to a new coffee blend last year has improved its reputation among consumers. "The coffee house is facing a new world order," Greenberg wrote in a note late yesterday. McDonald's is "the very last company we would choose as competition" for Starbucks. McDonald's, which reported monthly sales today that rose the most in three years, is selling iced coffee and other specialty brews at some U.S. stores. In February, Consumer Reports magazine ranked McDonald's coffee ahead of Starbucks, saying it tastes better and costs less. McDonald's coffee has "surprisingly high...

Stock Spotlight: Shares of the coffee chain have been ice cold lately, but they could start to percolate again soon. By David Ellis, CNNMoney.com staff writer June 8 2007: 10:20 AM EDT NEW YORK (CNNMoney.com) -- Forget the foam and make that latte skim, and sugar-free. Right now, Starbucks stock is really out of shape. Over the past year, shares of the Seattle-based coffee chain have been one of the worst performers in the S&P 500, tumbling about 20 percent. And after years of rapid expansion, Starbucks still has aggressive store openings planned - and it's expanded its offerings beyond macchiatos and chai tea to breakfast sandwiches, books and music. Just this week, Starbucks released ex-Beatle Paul McCartney's newest album, making him the first artist released on the company's new Hear Music record label. But with the company facing higher commodity prices and growing competition, is Starbucks stock even worth a sip? As of last month, Starbucks had about 9,800 stores ...