Price of Coffee At 15 Year Highs

Coffee drinkers get ready to pay up. The price for a pound of coffee has soared to 15 year highs.

The December 2011 coffee futures contract traded on the New York Mercantile Exchange has soared over 30% since the beginning of this year.

However, there may be no reason of concern for coffee addicts. Looking at the past 35 years of historical price action, whenever the price of coffee trades over $3.00 a pound, it reverses back under $1.50 a pound.

The reason for the rise in coffee prices? I'm not one to speculate other than coffee traders running the contract up every decade and then sinking it. Whether its increased worldwide demand, coffee bean fungus, heavy rains in Brazil, or whatever reason, your cup of Joe is going to cost you more.

About Kerry Kobashi

Kerry is the founder of KerryOnWorld. He lives in Silicon Valley and has worked as an engineer and project manager. He owns Kobashi Computing a consulting company.