Some say breakfast is the most important meal of the day. But unfortunately, the commodity markets are saying that prices to fill your bowls and cups each morning could be heading higher. 🥣
If we look at Finviz’s year-to-date performance chart for the major assets tracked by the futures markets, four of the top five gainers are agricultural commodities. Orange juice leads the pack, rising 84.53%, followed by sugar (+44.2%), Cocoa (+39.68%), and Oats (+30.10%). They’re only separated by the Nasdaq 100, which is up 36.91%.
So, if they’re all up so much already, why does the market believe more gains are left in the tank? 🤔
Traders have been clamoring about orange juice futures since they broke out to new all-time highs in February and haven’t looked back since. And right now, another agricultural commodity is probing all-time highs. 🤩
That commodity is cocoa, which has been going loco since late last year and is now approaching the highs it set back in 2011. Traders are watching closely, anticipating that if prices break out to new all-time highs, they could experience a sharp run like orange juice did. 🍫
Time will tell whether or not that comes to fruition. But what’s clear is that many food-related commodities are at historically high prices, which likely means breakfast isn’t getting cheaper anytime soon. Especially if you like your orange juice! 🍊