In today's edition of "Talking Stocks," analyst Austin Smith touches on the crazy low arabica bean prices. If it seems like just recently that prices of the higher-quality bean shot higher, that's because they did. This forced many companies to raise their prices to preserve margins. Now that bean prices are sharply lower, it spells higher margins because the existing price hikes are expected to remain in effect. However, there are still two things that could send bean prices higher again that investors need to watch. The key player right now is Brazil, whose record crop could be affected by farmers' decisions to sell, as well as shifts in the weather later in the year.
At the time thisarticle was published Austin Smith owns shares of McDonald's. Motley Fool newsletter services recommend Green Mountain Coffee Roasters, McDonald's, and Starbucks. The Motley Fool owns shares of Starbucks. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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