Winter Beverages Warm Up

As families circle around Christmas trees, fireplaces, and tables this weekend, they will likely have a warm drink in their hands. As a wonderful year-end gift, commodity markets are delivering lower prices for these drinks, as coffee, cocoa, and sugar prices are all falling just in time for the holidays.

Cocoa prices are leading the way down, touching 3-year lows as global supplies are vastly outpacing demand. The Ivory Coast and Ghana, which account for 60% of global cocoa output, are having bumper crops this year, which has helped depress prices.

Meanwhile, coffee and sugar are near their lowest price since the summer, trading for $1.37 and 18.2 cents per pound, respectively.

So, refill your mug guilt-free and enjoy warm hands, good company, and a slightly cheaper treat. Just don’t go overboard on the milk; dairy prices are near a two-year high!

Metals Melt Lower

Last-minute shoppers may be seeing a discount on jewelry as gold and silver prices have continued declining before the holidays. The metals are dropping as bets on rising interest rates are drawing big-money investors away from bullion that doesn’t pay interest or dividends like other investments.

Both markets are at their lowest level since last spring and are approaching multi-year lows, making the current prices more attractive to collectors and investors as well. As of midday Friday, gold traded for $1130 per ounce, and silver settled near $15.75 per ounce.

Livestock Drop

Christmas came early for livestock traders with a series of USDA reports out midday Friday. The USDA normally releases its major livestock data when the market is closed, but due to holiday schedules, the government agency released a trio of market-shaking data at 11 AM CST Friday while markets were open.

The quarterly Hogs & Pigs Report revealed a much larger national herd than expected, 4% larger than last year, which sliced pork to 62.5 cents per pound, the lowest price in a week.

Meanwhile, the monthly Cattle on Feed report showed a sharp rise in the number of cattle placed into feedlots, a sign that future beef supplies could rise. This made beef prices grind lower, reversing some of the market’s recent sharp gains.

For those shoppers who have yet to stock up on hams and roasts, last-minute price breaks might be in the cards!