Exchange traded products that track coffee futures rose 2% on Tuesday after JM Smucker (NYSE: SJM) said it cut prices for most of its coffee products sold in the U.S.
The company said it reduced items sold under the Folgers and Dunkin’ Donuts brands by 6% on average.
“The decrease in price is driven by declines in the green coffee futures market,” it said.
However, the move comes after a series of coffee-price hikes from Smucker. The company made three price increases during 2011 totaling 23%. [Coffee ETN Buzzes as Smucker Cites Higher Prices]
The iPath Dow Jones-UBS Coffee ETN (NYSEArca: JO) and iPath Pure Beta Coffee ETN (NYSEArca: CAFE) were up about 2% in afternoon trading Tuesday.
The iPath Dow Jones-UBS Coffee ETN, an exchange traded note, is flat for 2011.
iPath Dow Jones-UBS Coffee ETN
The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.