CHARTS AND COMMENTS

Soft commodities into autumn 2022

Let us see if Coffee, Sugar and Cocoa collectively make it back up into the autumn this year.

The weekly chart above consists of Coffee, Sugar and Cocoa and is made to have them equally weighted.

The last July's have seen these soft commodities finding support to prices throughout the month of July. Only time will show if this is the case in 2022 as well, in an otherwise strong inflationary environment.

 


Soft commodities week 25

Coffee, Sugar and Cocoa are here defined as Soft Commodities. The graph below is showing all 3 commodities equally weighted on weekly basis, were each bar is counting as one tradingweek.

Collectively Coffee, Sugar and Cocoa are trading as much as - 6.7% from their February closes. In other words in USD terms, today you get ahold of more Soft Commodities for the very same USD amount compared to what you did back in February. 

Inflation is defined as the decline of purchasing power of a given currency over time. Prices of Coffee, Sugar and Cocoa combined are still at their November 2021-levels. According to the latest report from the Bureau of Labor Statistics, the annual inflation rate in May was 8.6%, its highest level since 1981. In conclusion, Coffee, Sugar and Cocoa are certainly not contributing to this inflation equation. At least not yet.

 

 


COFFEE, SUGAR AND COCOA IN APRIL 2022

COFFEE SUGAR AND COCOA WITH ZERO INFLATION

After the first week of trading in April of 2022 commodity markets see Coffee, Sugar and Cocoa collectively sideways over the past 4 weeks. Since the beginning of the year they are + 3.9%. To regain the February top, markets need to soar + 8.5%. 

Coffee, Sugar and Cocoa are collectively also trading lower than February 2020, November 2020, and October 2021.

As you see from the chart, there is still zero inflation to these commodities prices. For now the three soft 's are trading horisontal, not up, not down.

In depth Coffee.

In depth Sugar.

In depth Cocoa.


COFFEE, SUGAR AND COCOA WEEK 7

Half way into week 7 of 2022, here is how the Soft commodities of Coffee, Sugar and Cocoa are developing.

One bar equals one week of trading activity. The overview shows the graph equally weighted between Coffee, Sugar and Cocoa. Since mid November last year, they are collectively + 13.5%.

The chart shows higher highs and higher lows on the weeky scale, indicating strength rather than weakness. The Softs are now trading at the level seen in February of 2020. Until markets see a Red bar on the weekly scale, the uptrend prevails.

For more updates and seasonality behaviour, see Coffee, Sugar, and Cocoa.

#coffee #sugar #cocoa #coffeeprices #sugarprices #cocoaprices #tradingcoffee #tradingsugar #tradingcocoa #coffeeseasonality #sugarseasonality #cocoaseasonality

 


Soft commodities into week 43.

The lower prices for Coffee, Sugar and Cocoa are presented below.

- Continuing the chart above from last week. There is now overhead resistance to "collective" Coffee, Sugar and Cocoa prices. The chart shows a lower low and a lower high on the weekly time scale. This signals potentially lower rather than higher prices for the soft commodities to come.


Facts on Coffee, Sugar and Cocoa

So what about inflation - any pressure from Coffee, Sugar and Cocoa prices?

Absoulutely NOT. Looking at the 3 common soft commodities there is very little inflation in broader terms;  Since February 2020 into July this year, these commodities actually collectively fell 17%. The latest 13 weeks they are up 16%. The soft commodity markets are still lower than they where in February 2020, and also compared to December of last year.

The question becomes rather if it is ok to view them all 3 in the very same chart...

 

Looking at the weekly graph, there now seems to be collectively price resistance around the two former peaks formed the last two winterseasons. After the recent upside price pressure, history shows prices could quickly reverse down again or pause at current levels.


Monthly changes

Ever wondering how a particular asset is doing through a certain month?

There is now a monthly performance view for each and every month from 2001 - present in:

GoldSilverCoffeeSugarCocoaNasdaq100DAXBitcoinLumber and Platinum.

The monthly changes table is located below the indicators on the respective sites.

 


Soft commodities to Oct 19th

- Blending Coffee, Sugar and Cocoa prices in one chart below.

The chart above shows how the three commodities are developing in 2021 vs earlier years. The weaker seasonal period from late February to May produced no change this year. The current and yearly stronger seasonal stage (May to October) is so far producing + 15%. 

According to seasonality and its historical facts, there is potentially more upside over the next 2 months. Lately, it has been coffee, and now it's sugar driving the prices higher. Cococa could soon be picking up steam also. To see each commodity individually, head over to their respective sections for the regular updates. Obviously, there will be breaks along the way for the price developments.

Trading is risky, it is vital to always to keep stop losses in place at a preferred level in - for financial instrument.


Pre US opens Tuesd 03. Aug.

All sections are updated pre US openings for Tuesday 03. August 2021.

GoldSilverCoffeeSugarCocoaNasdaq100DAXBitcoinLumber and Platinum.


Markets Thursday July 29.

All sections are updated pre US openings for Thursday 29th of July 2021.

GoldSilverCoffeeSugarCocoaNasdaq100DAXBitcoinLumber and Platinum.



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