Coffee is at its cheapest in three years (but your latte isn’t)

And you get a coffee, and you get a coffee. Everybody gets a coffee!
And you get a coffee, and you get a coffee. Everybody gets a coffee!
Image: AP Photo/Silvia Izquierdo
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Image for article titled Coffee is at its cheapest in three years (but your latte isn’t)

Coffee futures on IntercontinentalExchange, the commodities trading market, for arabica beans (not the cheaper, nastier robusta) traded below $1.30 per pound today for the first time since March 5, 2010. That continues a decline in prices since the April 29, 2011 high of $2.99 per pound.

This three-year low comes after heavy rains in Brazil’s growing regions failed to suppress the harvest as expected, and stockpiles of the bean remain high. The long-term decline in prices has prompted coffee makers J.M. Smucker and Kraft to lower the prices of their Maxwell House and Folgers brands. Starbucks has followed suit with its pre-packaged coffee, but hasn’t dropped prices for its over-the-counter beverages. So don’t go waving the graph above indignantly at your barista—there’s nothing he or she can do about it.