Cocoa futures might be grabbing all the headlines, but coffee prices are also breaking out to new highs in the first half of 2024. Blame it on El Nino, which typically delivers heavy rains to Brazil while hitting Vietnam with drought conditions. That's been pushing prices higher for not only arabica coffee futures (KCK24), but also May-dated robusta (RMK24), which recently surged to a new record.
As commodity prices are heating up, none other than coffee giant Starbucks (SBUX) has been freshly named to the Q2 tactical ideas list at Wells Fargo (WFC), with the brokerage firm throwing some conviction behind its “Overweight” rating. The analysts say the worst could be over for Starbucks, and price hikes in California could be a positive catalyst in the back half of the year.
