From the desk of Steven Strazza @Sstrazza and Ian Culley @Ianculley
Are Softs finally showing signs of life?
Base Metals, Grains, and even Energy have posted strong rallies over the last year. Yet the Softs — Cocoa, Coffee, Cotton, and Sugar — have continued to struggle below overhead supply.
But we’re seeing all the traditional signs of a structural trend reversal from this lagging group right now.
Let’s take a closer look at Coffee futures to pinpoint why we believe this bear-to-bull trend change is underway…