Money Minute: Drought Leads Smucker to Boost Coffee Prices

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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.

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.


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Iselin007

This country is really in a mess. Since 1990 graduates from college and trade schools have been entering a shrinking job market racked with changes from technology, outsourcing,and recessions. No sooner do you find a job it's gone or you have to train your displacement. Today the Great Recession leaves us even worse off than before. All they can come up with is crap jobs and extend the age of retirement !

June 04 2014 at 4:58 PM Report abuse +1 rate up rate down Reply
Iselin007

You can just see the next shoe to drop however after a brief boo whoo the traders will wipe the one tear out of their eye and go on investing.

Well guess what thise stuident loans will never be paid back because minimum wage jobs don't cut the muster! Next year more graduates will leave college an get right behind the last class before them who got in line before the class before that. Come up with some jobs or you can get right in line behind them!

June 04 2014 at 4:39 PM Report abuse +2 rate up rate down Reply
Iselin007

The government does'nt care where or what the middle class os doing as long as the stock market does'nt go down. You can be sure that the lowly pions will be the first put up for slaughter if the rich don't like what is going on over seas!

June 04 2014 at 4:23 PM Report abuse +2 rate up rate down Reply
Iselin007

I don't know how long this economy can survive with just aid from the FED because all it is doing is helping the banks. No regular people could afford any interest rates on crap jobs so expect another wittling down of the housing market.

June 04 2014 at 4:19 PM Report abuse +1 rate up rate down Reply
Iselin007

The Economic data today was bleak at best. Although the business news hosts agrees it was bad they are hardly the people concerned with the middle class's survival!

June 04 2014 at 4:12 PM Report abuse +2 rate up rate down Reply
thefacts22

In every other article from HP,contradictions ,are present,one day housing is up the next down,car sales "soar" a meager 1%,and so on and on.The economy is sick,and there is no recovery at all,for first time in USA history people believes our future is gloom and doom,much of our never resolved economic and currency disasters are "created" by the incompetence of our present "regime"

June 04 2014 at 4:01 PM Report abuse -3 rate up rate down Reply
petpetdon

What isn't going up?

June 04 2014 at 1:18 PM Report abuse +2 rate up rate down Reply
1 reply to petpetdon's comment
thefacts22

Barry does not know

June 04 2014 at 4:02 PM Report abuse -2 rate up rate down Reply
Iselin007

So how long is the housing recovery going to take because if it takes as long as it takes to get the US back to a middle class that could be forever.

June 04 2014 at 1:15 PM Report abuse +1 rate up rate down Reply
Iselin007

If this economy keeps up decliningg all yuour going to have is visa workers in NJ because there aren't any jobs which compelled 100,000 or more to drop out of the labor force.

June 04 2014 at 12:41 PM Report abuse rate up rate down Reply
Iselin007

Don't ask people to retrain they did that only to have their jobs outsourced yet again. Retraining as been a big profit maker because they know you can't find work and have to come back yet again no matter how good your GPA is!.

June 04 2014 at 12:39 PM Report abuse rate up rate down Reply