The beverage. Not the operator of a white Bronco.
My first job was a commodity trader. Predominantly aluminium. When asked I usually romanticize it as being the best of times. But really… it was boring AF and I probably spent more time staring out of the window than looking at any charts. I did get to travel quite a bit though, mostly to China and I’ve experienced those (now much maligned) wet-markets first hand…
‘Hey check it out there’s a pet store next to this restaurant’.
… and the fact that humanity has not yet been wiped out by some gastronomical apocalypse stemming from those wicked locales is to be constantly amazed by those who have picked (and eaten) something strange out of a plastic bin there.
In any event because I’m nostalgic I’ve always carried a flame for commodities… not that I’ll trade them… but like an ex-girlfriend you occasionally… drive past their house to see what they’re up to.
So last week Orange Juice futures went up almost 20%!
Wait… maybe I need to explain this…
Commodities futures are agreements to buy or sell a raw material at a specific date in the future at a particular price. The contract is for a set amount of stuff... in this case OJ.
Its future supply and demand stuff… with the added impetus of Covid-19.
Because OJ is an immune booster… eh… right? Or rather I suppose its the vitamin C that comes standard in every drop and we’re all drinking it by the gallon at the moment. And since there is no futures market for Cantaloupes. Or broccoli… wait… let me just double check… things may have ventured off-piste since I last took a gander at all things tradeable.
Nope. We’re good.
Personally I think its because all the farmers are imagining a situation where all their low paid migrant laborers will be all be dead… which obviously hampers the harvesting of said oranges, ergo, price rises.
Anyway, in a time where everything is going down its nice to see something going up.