Article: Coffee may rise in 2005 on demand for lattes

Coffee prices may rise to a six-year high in 2005 after outpacing major commodities this year, a Bloomberg survey found. Smaller crops in Brazil and the growing appetite for lattes may spur the increase.

The price of arabica coffee futures listed on the New York Board of Trade, the world's biggest coffee exchange, will average US$1 a pound next year, based on the median estimate of 11 analysts and roasters. That is 30 per cent higher than 2004. The futures are benchmarks for coffee sold by Procter & Gamble Co's Folgers and Kraft Foods Inc's Maxwell House brands.

Coffee futures jumped 60 per cent this year, more than commodities including crude oil, sugar, copper and hogs. Suppliers were ...

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