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This “basket” of commodities is up 13% since the late June bottom. That matches the increase in lean hog prices, and helps explain why bacon costs so much.<\/p>\n
But, when you look at some of the other components of the fund, the price increases are even more startling. For example, wheat is up 25% since June. Sugar has risen 26% in just the past month. And, the price of corn is 30% higher than where it was in August.<\/p>\n
For years we suspected the money printing policies of the Federal Reserve Board, and other central banks around the world, would create inflationary pressures and make a mess of the global economy.<\/p>\n
But, up until now, all that worrying was for nothing. Agricultural commodities were in a bear<\/a> market for the past nine years. And, falling food costs masked the increase in prices of other things – like healthcare, electricity, entertainment, etc.<\/p>\n Now, though, the central banks have nowhere to hide. Agriculture is back in a bull<\/a> market, and prices are rising. (Click here<\/a> to check out our new free resources tab, including our glossary and training videos.)<\/p>\n Paying $8.99 a pound for bacon probably isn’t enough to cause a riot.<\/p>\n Sadly, though, I suspect we’ll soon find out what price point will do the trick.<\/p>\n Best regards and good trading,<\/p>\n Jeff Clark<\/p>\n Have you noticed inflation in other common goods? Do you think this pattern will reverse once the pandemic begins to subside, or will the commodities market head higher?<\/p>\n![](\"https:\/\/casey-assets.s3.amazonaws.com\/images\/misc\/jeff-clark-signature.png\")
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