Do you like cocoa? I do. A lot!

Not sure if you are aware of butter products’ shortages in Europe lately, but because of very high demand and reduced supply prices are surging. It feels that financial experts are too busy calling a top in stocks and are missing, in my mind, one of the biggest macro stories of the next couple of years.

What if we start seeing something similar in other softs and agricultures? What if prices of other food products start surging too? I think this could have some serious effects on the real economy.

I will let other people discuss potential effects, but let me rather focus on where prices might go and what you could do about it.

Continue reading “Do you like cocoa? I do. A lot!”

Unloved soft commodities

I would like to present you a very interesting setup in soft commodities I am observing for a while now. I wrote about COT positioning already, so a frequent reader should be familiar with the term and how to read it. This time there is an extreme imbalance in hedge fund and producer positioning in sugar, cocoa, coffee and orange juice while the price of each sits at very low levels. Continue reading “Unloved soft commodities”