The cost of coffee beans is greatly reduced! Starbucks set a record high price.

The heavy depreciation of the Brazilian lira has made many local coffee farmers who suffer from a shortage of storage space happy to clear their stocks in order to earn a foreign exchange difference when sales are converted from dollars to lira, which has also led to a jump in Brazil's coffee exports, which in turn has reduced Starbucks and Kraft Foods (Kraft Foods Group Inc.) Wait for the cost pressure of the food industry.

Starbucks shares were completely undisturbed by the pullback of the US stock market at the end of May, rising 0.76% to $67.30 on July 3, the highest close since its listing in 1992. It has risen 25.49% so far this year, marking the fifth year in a row that ​​ has shown a strong trend. Kraft Foods pulled back slightly after it closed on May 28 ($57.54), hitting a new high for 2012.

Coffee exports jumped 20% to 13.385 million bags (equivalent to 803000 metric tons) in the first half of this year (2013) compared with the same period last year, the Brazilian Ministry of Trade announced on July 1st. The dollar rose 10.20 per cent against the Brazilian lira in the second quarter of this year, the highest quarterly gain since Q2 2012, according to Castrol XQ global systems quotes.

Arabica coffee futures traded on the intercontinental exchange (ICE Futures US) have fallen 61% since they hit a 14-year high in may 2011, and are down 16% to $1.214 a pound so far this year, Bloomberg reported Thursday. According to a Bloomberg survey, 18 analysts expect the price of coffee beans to fall a further 11% to $1.08 a pound by December 31 after global supply outpaced demand for the fourth year in a row.

American food giant JM SMUCKER CO. The price of Folgers instant coffee was cut in February, while Starbucks' gross profit margin rose in the second quarter (January-March). Thirteen analysts expect Starbucks' net profit to rise 21% in the third quarter (April-June), according to a Bloomberg survey.

(responsible Editor:)