Coffee prices climbing, gasoline prices on the way down

Civet eating coffee cherry
Civet eating coffee cherry

The fuel that gets your body moving in the morning, coffee, could be on its way up in price, thanks to a worldwide shortage. The fuel that runs your car, however, could be on the way down, thanks to a nationwide glut.

Coffee growers in Colombia, where much of the higher-quality beans come from, have been hit by bad weather and a fungus that is damaging plants, resulting in back-to-back bad harvests and the prospect of another to come. Since Colombia is the third largest exporter, the result is a sharp climb in the coffee bean market. Arabica bean futures for December delivery areselling at $1.94 a pound, up from around $1.40 in June.

According to CNN Money, J.M. Smucker (Folgers, Dunkin' Donuts and Millstone) has already increased shelf prices by 10%, while Kraft (Yuban, Maxwell House) raised its prices by 9%.