A Typical Day, Commodity Style
Let's say most people, including myself, have a cup of Joe when they wake up. Coffee prices are lower by 23% year to date.
After a couple of cups of coffee, let's get some vitamin C in our system and why not eat a bowl of Corn Flakes? FCOJ prices are lower by 23% in 2012, but well above their 2008 lows when prices were almost half the current price. Jumping over to the grains, CBOT wheat prices are higher by 23%, while corn prices have appreciated 31%. For what it is worth, I think grain prices will see further depreciation. Just maybe our cereal and loaves of bread will see price declines in the weeks/months to come.
After a hearty breakfast, let's put some clothes on and get ready for a big day. Cotton prices year to date are lower by 17% at current pricing, but the dramatic swings are a bigger story. In 2012, high-to-low cotton prices have traded as high as 97 cents and as low as 65 cents. The current price is 73.
In order to tell time, I know we could use our iPhone 5, but let's actually wear our gold watch. The decade-long bull market lives with gold prices up 10% year to date.At these prices it may make sense to ride our bicycle or walk, but we're late for a meeting and need to drive an SUV. At 13 miles per gallon it's painful, but the fold-down back seat is sure great. RBOB gasoline prices are up 14% from the first of the year. We did get some relief in the spring, but just since June prices have appreciated 35%. After a long day at work nothing satisfies me like a big juicy steak. Live cattle prices are less than 1% off their prices at the New Year. But the beef market has not been sideways, with a 15-cent trading range year to date. At current levels I'm looking for a selling opportunity. When that happens, let's stock up on Prime beef at Costco.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV