The last few years saw markets in the Softs sector soar to record highs due to adverse weather across key growing areas around the world, creating short supply situations.
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On the other hand, gold and silver continue to skyrocket on continued strong global demand.
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I’ve talked a lot recently about the historic rally in Metals, particularly gold and silver, bringing to mind some of what I’ve written in the past about the Softs sector. George K., my young friend from Greece, sent me an email asking about something I had written regarding the difference in the moves made by markets in these two sectors. Reading between the lines, he asked if the difference I was referring to was a supply driven rally and demand driven markets. He was spot on. But his question prompted me to write a more in-depth look at what this means.
