Coffee-related stocks were mixed as coffee prices were wafted to their highest since the 1970s on supply worries.
Coffee pod maker Keurig Dr Pepper Inc (NASDAQ:KDP) shares fell 1% but Nestle S.A. (OTC:NSRGF, VTX:NESN) shares were up in Switzerland and on the US OTC.
Starbucks Corp (NASDAQ:SBUX, ETR:SRB) shares rose 0.6% but J M Smucker Co (NYSE:SJM) fell 0.5%.
Arabica coffee futures on the ICE rose 5.3% to $3.288 a pound, the highest since 1977 and not far from the all-time record of $3.356 in April of that year.
Prices have risen from below $1.90 a year ago on worries about weather conditions in Brazil, following a long drought and high temperatures, and West Africa.
Analysts at ING said that despite recent rains aiding coffee flowering in Brazil, concerns remain over flowers attaching to branches, risking future production losses.
Higher exports, reduced stockpiles, and low production could tighten supplies.
Citi analysts raised their 2025 coffee price estimates to $2.80 per lb, citing Brazil's crop uncertainties and global production growth trends.