From Commodities Markets to Supermarkets
One morning while reading Barron's, Kara Newman took note of a casual bit of advice offered by famed commodities trader Jim Rogers. "Buy breakfast," he told investors, referring to the increasing value of pork belly and frozen orange juice futures. The statement inspired Newman to take a closer look at agricultural commodities, from the iconic pork belly to the obscure peppercorn and nutmeg. The results of her investigation, recorded in this fascinating history, show how contracts listed on the Chicago Mercantile Exchange can read like a menu and how market behavior can dictate global economic and culinary practice.
The Secret Financial Life of Food reveals the economic pathways that connect food to consumer, unlocking the mysteries behind culinary trends, grocery pricing, and restaurant dining. Newman travels back to the markets of ancient Rome and medieval Europe, where vendors first distinguished between "spot sales" and "sales for delivery." She retraces the storied spice routes of Asia and recounts the spice craze that prompted Christopher Columbus's journey to North America, linking these developments to modern-day India's bustling peppercorn market.
Newman centers her history on the transformation of corn into a ubiquitous commodity and uses oats, wheat, and rye to recast America's westward expansion and the Industrial Revolution. She discusses the effects of such mega-corporations as Starbucks and McDonalds on futures markets and considers burgeoning markets, particularly "super soybeans," which could scramble the landscape of food finance. The ingredients of American power and culture, and the making of the modern world, can be found in the history of food commodities exchange, and Newman connects this unconventional story to the how and why of what we eat.
The Secret Financial Life of Food is of benefit to anyone who is involved in the food industry, including growers, processors, consumers, and even professionals in the culinary arts. It also has appeal for those of us who buy and sell commodity futures, helping us gain a better understanding of how the markets have evolved.
Alan Bush, senior financial futures analyst, Archer Financial Services, Inc.
Interesting, thought-provoking book for food aficionados.
Those who are interested in the history of the "food" commodity markets will find many treats in Newman's book.
a refreshing and much-needed look from a different perspective: food as commodity.
Introduction: Buy Breakfast
1. How Does Commodities Trading Work?
2. The Spice Route
3. The Commodity That Built a Nation: Corn Futures
4. Great Grains
5. Butter-and-Egg Men
6. The Mochaccino Market: Coffee, Sugar, and Cocoa
7. Cattle Call
8. This Little Piggy Made a Market: The Rise and Fall of Pork Bellies
9. When Money Grows on Trees: Produce Futures
10. Super Soybeans
11. The Future of Food Futures? Contracts to Consider
Read the chapter, "Cattle Call" (to view in full screen, click on icon in bottom right-hand corner)