The very word commodity is something like a slur. If you're "just a commodity" it means you have nothing special to offer, you are average, common, and undistinguished. Merrriam-Webster in the dictionary says a commodity is a "mass produced, unspecialized product".
No one wants to be in the commodity business because it is specialization which brings distinction, branding and the possibility of a price bonus above the normal returns. No one wants to be in the commodity business until a worldwide boom takes place and then it is just the place to be because commodities are the fuel of growth in the global economy.
The chart above depicts a weighted price index of 23 commodities from 1947 to 2007. You can reproduce it and take a look at some others at http://www.crbtrader.com/
We are going to be taking a look at the impact of $5.00 corn and $400 beanmeal. A friend of mine believes we are about two years away from all time record high hog prices due to commodity price pass-through and global demand. He would be the first to remind you that record high hog prices don't necessarily mean record high profits but they probably do mean record high food prices.
