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Notable news items from the last few days and price action from Friday’s trading session.

  • SBUX raised its prices for grocery packaged coffee by 12% on Friday.   The increase impacts both Starbucks and Seattle’s Best Coffee brands and is the company’s first price increase on grocery packaged coffee since March 2008.  The increase was, of course, due to still climbing coffee commodity prices.
  • PEET gained 3.8% on strong volume on Friday.  CHUX, MSSR, RRGB, and BOBE also traded up on high volume versus their respective 30 day average volumes.   SBUX, MCD, and AFCE declined on accelerating volume.
  • Wheat stockpiles shrinking the most in 14 years suggests that prices will rebound from their recent slump.  According to a Bloomberg survey of 22 analysts, the grain will average $8 per bushel on the Chicago Board of Trade in the second quarter, an 8.9% gain on the $7.345 at which it traded today.
  • Corn and soybeans may rise for a second straight week on speculation that wet, cold weather will delay planting and reduce yield prospects in the U.S. while rain threatens oilseeds ready for harvest in Brazil.
  • Beef prices could be supported by a rise in demand from Japan, according to a Barron’s article citing an analyst from D.A. Davidson that stated that Smithfield Foods (SFD) has seen demand in Japan increase over the past week.  According to the note, the meat producer, along with companies like Tyson Foods (TSN), “could see even higher demand if Japanese citizens begin to worry about the safety of their food in the wake of radiation exposure.”

TALES OF THE TAPE: SBUX, PEET, CHUX, MSSR, RRGB, BOBE, SBUX, MCD, AFCE, SFD, TSN - stocks 321

Howard Penney

Managing Director