Coffee hits highest level since 1997 on demand

Coffee futures hit their highest levels in 14 years Friday on mounting speculation that global demand would eclipse production.Coffee futures hit their highest levels in 14 years Friday on mounting speculation that global demand would eclipse production.

According to Bloomberg, the largest U.S. seller of single-serve coffee brewers, Green Mountain Coffee Roasters, trades in New York at 295 times cash flow - more than any other company in the Standard & Poor's 500 Index. Arabica-coffee futures have jumped more than 100 percent over the past 12 months as inclement weather around the globe hurt crop yields.According to Bloomberg, the largest U.S. seller of single-serve coffee brewers, Green Mountain Coffee Roasters, trades in New York at 295 times cash flow - more than any other company in the Standard & Poor's 500 Index. Arabica-coffee futures have jumped more than 100 percent over the past 12 months as inclement weather around the globe hurt crop yields.

Consumers drank more coffee in 2010 than the year prior as consumer spending rallied and demand rebounded amid a global economic recovery. Inventories monitored by ICE Futures U.S. have fallen to their lowest point since April 2000; moreover, shares of Green Mountain and Starbucks have climbed more than 45 percent in the past year on the burgeoning demand for coffee.Consumers drank more coffee in 2010 than the year prior as consumer spending rallied and demand rebounded amid a global economic recovery. Inventories monitored by ICE Futures U.S. have fallen to their lowest point since April 2000; moreover, shares of Green Mountain and Starbucks have climbed more than 45 percent in the past year on the burgeoning demand for coffee.

"Demand is pretty strong," affirmed Thomas Mikulski, a senior strategist at Lind-Waldock. "There are no fresh developments on new crops, so that has left the market focusing on current tight supplies.""Demand is pretty strong," affirmed Thomas Mikulski, a senior strategist at Lind-Waldock. "There are no fresh developments on new crops, so that has left the market focusing on current tight supplies."

Friday on ICE Futures U.S. in New York, arabica coffee futures for May delivery rose 1.5 percent to settle at $2.73 per pound; earlier in trading, the price touched $2.759 - the highest level since May 1997.  Friday on ICE Futures U.S. in New York, arabica coffee futures for May delivery rose 1.5 percent to settle at $2.73 per pound; earlier in trading, the price touched $2.759 - the highest level since May 1997.