Here’s why live cattle, orange juice, cocoa, olive oil prices are surging

September 23, 2023 01:46 AM PDT | By Invezz
Follow us on Google News:

The US published mixed inflation numbers this month. According to the Bureau of Labor Statistics (BLS), the headline consumer inflation jumped to 3.7% in August while core inflation slipped to 4.2%.

Live cattle price is surging

These numbers imply that the country’s inflation remains high and higher interest rates are making it worse. For one, there are signs that the average mortgage rate will jump to 8% in the coming weeks. Auto loans and other personal loans interest has jumped while M2 money supply has soared.

A key challenge for the Fed is that commodity prices are spiking again. Brent crude oil has jumped to $95 and there are signs that it will hit $100 soon. Most importantly, important food commodities are now at an elevated level. Watch here:

Live cattle price has jumped by more than 20% this year and is now sitting at its highest point on record. Data by Barchart shows that the live cattle price ended the week at $183, a few points below the all-time high of $189.

Live cattle prices has dropped because of the elevated demand in the US and the slowing growth of production. Climate activists have for years accused beef farmers of having major methane emissions.

Cocoa, orange juice, olive oil soaring

Cocoa price has also surged, as I wrote here. It has jumped by more than 64% from the lowest level in 2020. This growth is mostly because of the falling yields in Ivory Coast and Ghana, which control the market. Demand for cocoa has also been rising over the years. Cocoa is an important commodity used to manufacture chocolate.

Orange juice has also soared in the past few years because of the falling production in Florida. Florida’s production has crashed in the past few months because of the strength of recent hurricanes.

Olive oil price has jumped by more than 100% this year because of the rising concerns of drought in key European countries. In a recent note, the USDA said:

“The average price in August was 130 percent higher than the year before, with prices quickly surpassing the previous record of $6,242/ton set in 1996 with no sign of easing. While prices have moderated consumption somewhat, consumer and cultural preferences for olive oil make it difficult to substitute.”

Taken together, the implication of all this is that inflation will remain stickier for a while. Besides, farmers are now paying higher interest rates while the ship traffic jam at the Panama Canal is making things worse.

The post Here’s why live cattle, orange juice, cocoa, olive oil prices are surging appeared first on Invezz


The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media LLC (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.

Top Listed Companies