Good News For Coffee Lovers

In markets, you can’t be surprised by anything. But we doubt anyone had egg prices being the hottest conversation topic on their 2022/2023 bingo card. πŸ“

However, it’s totally true. Egg prices have absolutely soared and are now the talk of the town.

Don’t believe us? Look no further than Kyla Scanlon, who nailed the current *ridiculous* sentiment… πŸ₯š

Or unusual_whales, who created a “Breakfast Index” to help track prices.

Well, we don’t have any good news about egg prices coming down anytime soon. But we wanted to add some good news for coffee lovers to the conversation. 🫘

While commodity-related assets were among the best performers in 2022, coffee futures had a rougher year than their peers. And so far, their decline has continued, with prices only slightly above where they began in 2020.

The food component will be a big component of tomorrow’s Consumer Price Index print. Food prices at home and away have kept the pressure on several key inflation measures, even as energy prices have come down in recent months. πŸ₯«

And while coffee futures have come down in price, several other food-related commodities haven’t yet. Even so, it takes time for those price declines to work their way through the economy and into consumer prices. As a result, we’ll have to see what the inflation print ends up being.

For now, though, coffee lovers can drink up. The (downward) trend remains your friend. β˜•

Just maybe skip the eggs with breakfast for a while. 😜

Learn More About...

Sugar Hits Sweet Spot As Gold Shines

It was a slow day out there, but several commodities caught traders’ eyes. Let’s see which ones. πŸ‘€

First up is sugar futures, which have experienced a nearly 30% decline since the beginning of November. While its major decline is one reason to be on people’s radars, technical traders say prices have reached the 20-20.50 area that served as an inflection point over the last two years.

Read It

Oil Returns To The Status Quo

The U.S. oil market is returning to its pre-pandemic norms, at least according to the manager of the popular oil ETF $USO. πŸ›’οΈ

The United States Oil Fund ($USO) has been around since April 2006 and is a futures-based ETF that looks to track the price of U.S. crude oil. It does so by purchasing the front-month sweet light crude oil (WTI) contract, holding it, and then rolling its holdings to the following contract before expiration.Β 

Read It

Oil & Gas Sector Loses Its Energy

After a strong run throughout the summer, it’s been a rough two weeks for energy-related commodities and stocks. Today, an accelerating decline helped bring the sector back to the forefront of investors’ conversation. Let’s take a look at why. πŸ‘‡

In very short-term fundamental news, gasoline inventories surprised to the upside today on weak demand. That caused the commodity to extend its recent selloff. But more importantly, we also saw heating oil and crude oil selloff in tandem after holding relatively strong during gasoline’s pullback.

Read It