logo
  Join        Login             Stock Quote

Commodities Trends: Food Prices Rose More Than Normal CPIs

 January 10, 2011 02:41 PM


Last week, precious metals and agriculture commodities had a correction while oil and natural gas rose. The extremely cold weather across the country will certainly help the heating oil and natural gas prices. 

The following table and charts show the trend scores for various commodities. Silver (SLV) continued to retain its top spot while agriculture (DBA) remains to be at the second place. 

Assets ClassSymbols01/05
Trend
Score
12/29
Trend
Score
Direction
SilverSLV29.49%39.25%v
AgricultureDBA14.5%16.84%v
Precious MetalsDBP10.63%15.59%v
CommodityDBC10.39%11.85%v
Base MetalsDBB9.9%11.43%v
GoldGLD6.77%10.66%v
EnergyDBE6.29%7.2%v
US OilUSO3.07%6.54%v
Natural GasUNG-12.91%-14.62%^

[Related -5 Dogs To Sell Immediately]

[Related -Gold Loses Its Appeal Fast]

 

 

 

 

 As we are now in a new year, it is of interests to review some of commodity investing themes. In the previous articles (like this), we alluded the reasons behind precious metals investment, especially in silvers. In this article, we will look at agriculture commodities, especially food. 

Based on Food and Agriculture Organization (http:seekingalpha.comfao) of the United Nations, world wide food price rose 100% since year 2000 (7.2% annualized), compared with 2.8% annualized rate for CPI (Consumer Price Index, based on Bureau of Labor Statistics). It is clear that as globalization continues in the near future, food demand from billions of newly created middle class in emerging markets will continue to increase. It bodes well to agriculture commodity prices. 



To Summarize, agriculture commodity is in a secular long term bull market. It has a place in one's portfolios. With thatsaid, one still needs to maintain a systemic approach to manage the commodity investment.

iOnTheMarket Premium
Advertisement

Advertisement


Comments Closed


rss feed

Latest Stories

article imageOld Bank's New Breakout has Big Rally Potential

One of my favorite things to see in a long candidate is a pattern of beating Wall Street's earnings read on...

article imageIs The Stock Market's 5-Year Return A Useful Proxy For Valuation?

Tobin’s Q, a market-valuation metric, is back in the news, in part thanks to a widely read Bloomberg read on...

article image4 Dogs To Sell Immediately

Despite the chorus of analysts and investors calling for the long-awaited correction, the market is showing read on...

article imageThe Fed's Magical Mystery Tour

What's going on at the Fed? Notorious dove, Charles Evans of the Chicago Fed, gave a speech in read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center

Related Articles:

Buck The Crowd With These Gold ETFs
More Articles on: ETFs



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.