We love breakfast at Foremost Trading! We love it not only because it’s delicious, but also because there are many commodity markets that comprise the basic building blocks of breakfast. And if you’re a breakfast enthusiast like us, then you will find it important to know that many breakfast commodity prices are on the rise.
Before you become concerned, remember there is a long supply chain between your breakfast plate and the raw commodity. We’re obviously bringing a bit of levity to this subject, and there may not be a direct correlation between the commodity futures price and your groceries. Nevertheless, see for yourself the recent changes in price. (Unless otherwise noted, charts are taken with permission from OEC Trader. Click on the chart to enlarge the image.)
“American Standard” Breakfast #1: Cereal, Milk*, Toast, Butter, and Orange Juice.
May Wheat (ZWK14)
May Corn (ZCK14)
May Soybeans (ZSK14)
April Class III Milk (DAJ14)*
May Butter (BDK14)**
May Frozen Orange Juice (OJK14)
“Heart Healthy” Breakfast #2: Steak, Eggs, Cheese, and Bacon
April Live Cattle (LEJ14)
May Fresh Hen Eggs (WDK14)**
June Cheese (BJM14)**
April Lean Hogs (HEJ14)
“I Overslept” Breakfast #3: Chocolate Granola bar and Coffee
May Oats (ZOK14)
May Cocoa (CCK14)
May Sugar (SBK14)
May Coffee (KCK14)
As always, there is risk in trading commodities, and it may not be for everyone. We invite you to call your BROKER with question about how to use these markets for investment diversification. Which trading managers (CTAs) have profited from these price changes? How can using options help mitigate some risk in trading?
*Class III Milk is used for hard cheeses and other dairy byproducts that are not beverage quality. There are no exchange traded futures contracts for Class I Milk, which is used for beverages. Nevertheless, there will be some correlation in price since Class III may be used to calculate Class I prices. You can read more about the Dairy market complex from the USDA HERE.
**Chart taken from barchart.com.
Disclaimer: Trading futures, options on futures, retail off-exchange foreign currency transactions (“Forex”), investing in managed futures and other alternative investments are complex and carry a risk of substantial losses. As such, they are not suitable for all investors. This website contains information obtained from sources believed to be reliable, but such information has not been independently verified and its accuracy is not guaranteed by Foremost Trading. Past performance is not necessarily indicative of future results. Any mention of performance in any context whether actual or hypothetical is no guarantee of future results. Foremost Trading became a registered ‘dba’ of RCM Alternatives in July of 2020. Please see full disclaimer here: https://www.rcmalternatives.com/disclaimer/