By Joseph R. Perone
The Times (New Jersey)
Published on: 03/04/08

A commodity, as defined by the federal government, is any agricultural product that can be traded -- except onions.

So, by all means hold the onions, and hold on to your wallet or purse, because commodities have soared in price in recent weeks.

Everything from soybeans to corn and wheat have shot up because of limited supply and demand from overseas markets.

Some nonagricultural commodities affect the cost of other products. That's why everything from the gas in your car to the cost of a bagel is going up.

Following are some insights into commodities pricing from Jeffrey Mayer, president of MXenergy, a Stamford, Conn., company that sells electricity and natural gas to consumers, Paul Sorbara, chief executive of Golden Goliath Resources, a gold and silver exploration company in Vancouver; Shawn Hackett, president of Hackett Financial Advisors in Boynton Beach, Fla.; and Chuck Kowalski, a 15-year veteran of the commodities industry, who analyzes the market for web information site About.com:

GOLD The skinny on prices: Gold is up 14 percent this year, briefly touching a record $992 an ounce before closing yesterday at more than $984.

Why it's rising: Inflation fears, the falling dollar and worries about bond insurers on the hook for subprime mortgage debt.

What it means to you: Your dollar doesn't go as far anymore, and 1999 -- when gold traded for just $253 an ounce -- is a distant memory.

Where it's going: Don't be surprised it if goes through $1,000 soon.

COFFEE

The skinny on prices: Coffee futures have been trading for about $1.65 a pound, a 10-year high and about 35 cents higher than last month.

Why it's rising: Blame Vietnam, which held back part of its coffee crop from the market.

What it means to you: That double latte at Starbucks or any other coffee shop is costing more.

Where it's going: Java could hit $1.80 a pound because hedge fund managers consider it undervalued.

WHEAT The skinny on prices: Chicago wheat futures more than doubled in a year, to $11 a bushel, because Kazakhstan cut back on wheat production.

Why it's rising: Other countries are buying U.S. wheat because the dollar makes it cheaper than their homegrown crop.

What it means to you: Cereal, bread and other baked goods will not go down in price any time soon.

Where it's going: Not lower, because farmers switched to growing corn for ethanol production, reducing the acreage they can use for wheat.

OIL The skinny on prices: The average price of a barrel of oil this year was nearly 20 percent higher than a year ago. Crude finished yesterday at more than $102 a barrel.

Why it's rising: China and India are using all of the fuel they can for growing energy and transportation needs.

What it means to you: Gasoline and home-heating oil costs are rising, and so is the cost of goods trucked to market.

Where it's going: Don't be surprised if gas spikes to $4 a gallon.

COPPER The skinny on prices: Futures contracts for copper were selling for more than $392 a pound yesterday, up from $280 a year ago.

Why it's rising: China continues to consume enormous amounts of copper for telecommunications and data systems as it builds more cities.

What it means to you: Copper has been jumping in price for several years.

Where it's going: Could retest the all-time high of $420 a pound set in May 2006.