Coffee lovers can breathe a sigh of relief.
Prices for Arabica coffee bean futures sank again on Wednesday, dropping to $1.02 a pound. That is the least buyers have paid for the beans in seven years. Coffee beans have plunged 29% this year as roasters show weakening demands for beans from Columbia and Central America, the Wall Street Journal notes.
The price drop comes as the market adjusts to a bigger than expected crop of arabica beans from Brazil, raising global inventories of the beans, which are the most common type used in coffee. The surplus is expected to continue for at least a year.
Earlier this year, a fungus was reported to be devastating coffee bean crops in Guatemala.
News of the latest drop in coffee bean prices sent shares of Starbucks (SBUX) and Green Mountain Coffee Roasters (GMCR) up modestly in Thursday pre-market trading, though Kraft Foods (KRFT), which sells pre-packaged coffees, fell more than 1%.
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