Kevin Ferry says the "hot money" is fleeing gold and oil for another commodity: coffee. The co-founder of Cronus Futures Management offered CNBC his insights into Federal Reserve policy and the commodities/futures markets now.
As long as the Fed maintains "patience" with its current rate policy, the dollar should hold, he said.
"At some time, [dollar strength] will be a big concern. But not right now."
So why coffee?
Surprisingly to some, the crop is "the second largest commodity traded in the world," even topping steel, Ferry noted.
As to the apparent coffee bubble forming, Ferry borrows a phrase from Alan Greenspan:
"The situation is 'fundamentally unusual' — meaning, the prices on these things can get away from the fundamentals because everyone wants in on the trade."
One probable winner: the economy of giant java producer Brazil.
For Ferry's takes on unemployment and currencies, watch the full interview.
CNBC Data Pages:
What ETFs/Indices Say:
iPath Dow Jones AIG Coffee TR Sub-Index ETN
iShares MSCI Brazil Index Fund
SPDR Gold Trust
United States Oil Fund
Market Vectors Gold Miners ETF
Disclosure information was not available for Ferry or his company.