iPath Dow Jones - UBS Cotton Total Return Sub-Index ETN Archives - Inflation Watch

Despite declining coffee prices, Starbucks ($SBUX) hiking some prices by 1%

Dr. Duru — Wed, 04 Jan 2012 02:39:35 +0000

Although agricultural prices have generally decreaed for several months, coffee included, Starbucks (SBUX) announced today that it will hike the prices of some beverages by about 1% in the Northeast and the Sunbelt regions of the U.S. SBUX cites “the prices reflect competition in certain markets and higher costs for coffee, fuel and other commodities.”

Note that Starbucks stock was actually down today while the major indices experienced strong rallies.

For more detail see “Starbucks to raise prices in certain regions”

Starbucks had a great 2011. Did today's news end the coffee run for now?

Source: FreeStockCharts.com

Coffee prices have been sliding for months and ended 2011 down from 2010

The post Despite declining coffee prices, Starbucks ($SBUX) hiking some prices by 1% appeared first on Inflation Watch.

High prices for cotton could soon add to the squeeze on food prices

Dr. Duru — Tue, 29 Mar 2011 09:08:31 +0000

In “Amber Waves to Ivory Bolls“, the NY Times describes the general rush of farmers to plant fields of cotton in the U.S., Brazil, and other countries to take advantage of the high prices of cotton despite the high prices of other food crops. This wave could place further upward pressure on the prices of food as clothing makers win the battle for acreage.

The NYT includes a particularly poignant quote from Webb Wallace, executive director of the Cotton and Grain Producers of the Lower Rio Grande Valley:

“It’s good for the farmer, but from a humanitarian perspective it’s kind of scary…Those people in poor countries that have a hard time affording food, they’re going to be even less able to afford it now.”

It could be another year of discontent for those people whose budgets are largely consumed by the costs of food.

The cotton ETN, BAL, cotninues to soar

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High cotton prices drive up linen and towel costs

Dr. Duru — Thu, 24 Feb 2011 08:36:58 +0000

In “As Cotton Prices Rise, So May the Cost of Hotel Rooms“, CNBC cites the soaring costs of linens and towels as a potential contributor to higher hotel prices. I was most fascinated with the incredible price hikes since last summer.

Prices are from 2010 to 2011 as paid by hotels.

Queen-sized sheets: $72/dozen to $116/dozen (+61%)
Pillows: $8.80 to $9.56 (+9%)
Bath towels: $41/dozen to $64/dozen (+56%)

Cotton prices have been the main driver for skyrocketing costs.

Using BAL as an example, cotton has risen at least 162% since the end of 2010.

http://plus.cnbc.com/rssvideosearch/action/player/id/1811372910/code/cnbcplayershare

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