It's Not Just Beef Prices That Are Rising

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 |  Includes: DBA, FUD, JJG, JO
by: Moby Waller

Summary

Rapid price increases have occurred not just in beef, but in pork and shrimp as well.

Other food and agricultural commodities, such as eggs, coffee, and some fruits/vegetables have risen dramatically, or are expected to do so this year.

This kind of price inflation affects many people directly, and is a bit under-reported by the Fed in their inflation data.

There's been some media attention in recent days about the fact that beef prices have risen to multi-year highs - articles discussing how the price of a good steak is rising dramatically, for example.

But there is additional food inflation going on currently in a wide variety of areas - and this is the kind of inflation that affects the majority of people directly, and one which the Fed seems a bit oblivious about in their reported price inflation data. Also affected are the restaurant and packaged goods industries - some more than others.

Just for example, see the following 5 charts: (the first 4 are from zerohedge.com, the 5th from wsj.comand is only a projection of price increases)

Beef Prices Chart

Pork Prices Chart

Shrimp Prices Chart

Egg Prices Chart

Produce Price Rise Projections

There are different factors/explanations involved in why each of these different markets are rising - drought, disease, etc. It's not just the above mentioned commodities, for example, the Coffee ETF (NYSEARCA:JO) is up huge this year.

JO Daily Chart
Click to enlarge

As far as ETFs that directly move with these types of food-related agricultural commodities, investors and traders can look at UBS CMCI Food Total Return Index ETF (NYSEARCA:FUD), (but keep in mind that it is lightly traded). The more widely known PowerShares DB Agriculture ETF (NYSEARCA:DBA) is also up big in 2014 so far. Ditto for iPath Grains ETF (NYSEARCA:JJG).

DBA Daily Chart
Click to enlarge

And that is not even mentioning other non-food commodities that have rallied in 2014, such as Crude Oil (NYSEARCA:USO) and Natural Gas (NYSEARCA:UNG). Even Gold (NYSEARCA:GLD) is higher this year.

While there's a variety of things we could write and comment about all of this - for the active investor and option trader, the most relevant point is: there's always a bull (and bear) market somewhere.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.