Poor Farmer

President Dilma Rousseff drinks coffee during last year’s election campaign. By Claudia Assis MarketWatch February 8, 2011 SAN FRANCISCO — Brazilian computer programmer Marcio Carneiro has spent about $4,000 in the last two years selecting just the right equipment to feed his passion: coffee. To at least some of his countrymen, the object of his affection is so culturally ingrained it doesn’t merit more than a passing thought and a quick trip a corner store. But Carneiro and other coffee enthusiasts are a big part of what is putting smiles on the faces of Brazilian coffee growers, who are already enjoying coffee prices at multi-year highs. A surge in domestic demand, which is keeping more of Brazil’s export-grade beans at home, may drive coffee prices even higher. We will likely see new highs until the third quarter of this year,” said Rodrigo Costa, an analyst at brokerage Newedge in New York. Coffee futures (INTERCONTINENTAL:CC11H) have gained 82% since January 2010. Th...

Reuters February 8, 2011 NEW YORK - J.M. Smucker Co (SJM.N), the top U.S. packaged coffee maker, raised prices for most of its coffee products on Tuesday, as the cost of beans has soared 85 percent in eight months. [ID:nSGE7170CT] Coffee prices, which are affected by crop conditions, currency fluctuations and market speculation, have a history of volatility. This popular beverage is still considered an affordable luxury in the developed world. Below is some of the recent history of its price moves in the futures market and on store shelves. (Graphic on coffee and Smucker's share prices) * May 1997: New York spot arabica coffee futures KCc1 surge to $3.18 per lb. * 1997: The then Folgers Coffee Co raised prices for Folgers coffee by a staggering 29 percent due to soaring green bean prices. This was followed by another price hike of nearly 10 percent a couple months later. * May 18, 2010: J.M. Smucker Co (SJM.N) raised list prices for majority of its Folgers, Dunkin...