NEW YORK (TheStreet) -- Food commodities have become one of the best-performing asset classes of the year.
Coffee is up roughly 65% since 2014 started. Lean hogs are up 39%, soybeans are up 14%, corn 13%, and wheat 11%.
Tyson Foods' (TSN) CEO, Donnie Smith, has been warning consumers about higher food prices since March. Tyson stock is reacting accordingly, too. Tyson stock is up 20% this year and crushed its latest revenue expectations on May 5. Wall Street had predicted revenue of $8.85 billion and Tyson posted revenue of $9.03 billion.
Rising food prices can have a negative impact on an economy. It means some consumers will have less discretionary money to spend. They will have to allocate a larger sum of money to purchasing higher priced food. This is a development to watch.
On StockTwits, a great table showed the best and worst asset classes of the year. It perfectly maps how food commodities are outpacing everything else. In fact, nine of the top 10 best-performing assets on this table are food-related:
At the time of publication, the author held no positions in any of the stocks mentioned.
This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.