Breakfast Commodity Prices on the Rise

by Minority Fortune

breakfasttrayIt may be time to reconsider your breakfast options because the basic commodities are reaching all-time highs. However, you don’t have to develop an alternative to your breakfast grains for the moment. Luckily, agricultural goods are level and have even decreased a little in price. Milk is also not phased. The Globe and Mail reports that it’s the orange juice, tea, sugar, and coffee that you have to watch. Many are reporting that prices on these goods have risen and in some cases even doubled.

The prices reflect the smaller supply from countries that experienced a decrease in production. India experienced a hit to their sugar production this year due to weather conditions. Brazil is another major player for breakfast commodities, and they’ve recently been battling drenching rains. The rains have been affecting their oranges, coffee, and sugar crops. Cocoa crops have been affected in the Ivory Coast due to a poor harvest. Therefore, one should watch these commodity areas with caution if you’re an avid buyer.

Investors are flocking to these commodity sectors in the market in search of profit. While the market is certainly on the move, no one is certain how long the affect will last. These commodities discussed in this article usually do not move in sync, so no one will be sure of future activity of each. We’re sure a turnaround for sugar, coffee, and oranges will happen when the production increases in key countries. So, we’ll stay tuned!

What does this mean for me? What should I do?

Analysts expect the costs of cocoa to continue rising throughout the winter since demand is higher than supply. Therefore, if you have an affinity to cocoa (and we certainly do), it may be time to buy in bulk and store it in the freezer. You might want to bulk up on other basic commodities like sugar and tea as well. This way you can be affected less financially should these markets continue on the rise.

*Image courtesy of Image Source.
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