Three Cs Going Crazy in Commodities

|
 |  Includes: BAL, CAFE, CORN, UAG
by: Econ Grapher

With silver spiraling out of control, it's worth checking in on some of the other commodities. Indeed the agricultural or soft commodities have, as a group, been surging in recent times, sending the Dow Jones UBS commodities index up over 30% year on year. Not only have they inflated returns on broad based commodity investment products but they've inflated prices, political tensions, and economic risks around the globe. Three particularly inflated commodity prices in the agricultural/soft commodity space are cotton, corn, and coffee. As of Friday, cotton was up 122% year on year, while corn was up 83% and coffee up 111%. But as the charts below show, at least one of these C's may have gone too far.

Click to enlarge
(Click to enlarge)

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.