Money Minute: Drought Leads Smucker to Boost Coffee Prices


You might face some sticker shock when you grab for that morning cup of joe.

Coffee prices at the wholesale level have soared by about 50 percent this year, and now a leading retailer of packaged coffee is upping prices. J.M. Smucker (SJM), which owns the Folgers and Dunkin' Donuts brands, is raising prices by an average of 9 percent. The company says it's the first increase in three years. The main reason for the big jump in wholesale prices is the horrible drought that has plagued growing areas in Brazil. We haven't yet heard from Maxwell House, the other big supermarket brand from Kraft Foods (KRFT), to see if it, too, plans to raise prices.

%VIRTUAL-article-sponsoredlinks%The economic reports we get each month show the housing market has rebounded from the financial crisis, but most Americans don't believe that's really the case. A MacArthur Foundation survey finds 70 percent of people think the country is still in the middle of a housing crisis. And 40 percent of millennials -- those in the 18- to 34-year-old age group -- believe that owning a home is no longer an excellent long-term investment. One more stat from the report: 52 percent say they are having trouble making their monthly rent or mortgage payment.

The Dow Jones industrial average (^DJI) and Standard & Poor's 500 index (^GPSC) on Tuesday retreated from Monday's record highs. The Dow fell 21 points and the S&P 500 slipped less than a point. The Nasdaq composite (^IXIC) lost 3 points.

Apple (AAPL) continues to be the leading seller of smartphones in the U.S. According to comScore (SCOR), Apple controlled more than 41 percent of the market in February, March and April -- about the same as it did in the prior three-month period. Samsung's market share edged up to nearly 28 percent. Meanwhile, Google's (GOOG) Android is still the top operating system for smartphones with more than 52 percent of the market. Apple has 41 percent and Blackberry's (BBRY) share has shrunk to just 2.5 percent.

-Produced by Drew Trachtenberg.