Food commodity prices are way up this year. Economic growth, poor harvests are blamed. Bad news for consumers, but great for investors looking for outperforming returns. Are both sides getting a fair deal out of the market? Tom Osborn tries to count the beans.
What did you have for breakfast this morning? If the answer is Weetabix, you might be in trouble. Come to that, if you had eggs on toast, the same applies. Or even a hamburger (the cornerstone of any nutritious breakfast). And I hope you didn’t drink orange juice with it. How much did that set you back?
If you’re wondering, here are some clues. Front month arabica coffee futures are at $1.76/lb, 41% higher than a year ago. Live cattle are up 14% on last August, orange juice 40%, cocoa 19%, wheat 41%, lean hogs 75%. At least white sugar is only up 1% –...