Cotton and sugar futures have also risen sharply in recent months, rising by 11%and 20% respectively since May.
This marks the reversal of the price trend of soft goods. Previously, after the global enterprises closed down one after another and the regional blockade measures were implemented, the prices of many soft commodities fell sharply. In March, cocoa futures prices fell by 17%, cotton prices fell by 18%, and sugar prices fell by 27%. Coffee prices soared briefly at the end of March, but fell by 1 5% from March to the end of May.
Extended data
Prices may continue to rise.
A key factor behind this rare synchronous rise is that major producers of soft goods continue to face the problems caused by the COVID-19 epidemic.
Joshua Graves, senior market strategist of RJO Futures, said that, on the whole, Viet Nam, Brazil and other countries have major problems related to the COVID-19 epidemic. Worryingly, with the accelerated growth of the number of cases in COVID-19, the speed of online supply will be obviously dragged down in the future.
Brazil, India and other major supplier countries are the regions most affected by the COVID-19 epidemic. According to the data of USDA, Brazil is the largest producer of coffee and sugar in the world. In 20 19, the coffee output was 59 million bags, and the sugar cane press capacity was 647 million tons. According to the data of USDA, India has produced about 350 million tons of sugarcane and 29.3 million bales of cotton, each weighing 480 pounds.
Brazilian authorities warned that despite the country's largest port? Santos Port, located in S? o Paulo State, has a record tonnage this year, but the year-on-year increase of 1 1% is mainly due to the increased demand for soybeans in China. They predict that the epidemic will eventually have an impact on freight volume.
Fernando Biral, chairman of Santos Port Authority, said in June that the data of Santos Port had not reflected the impact of the worldwide health crisis, but this situation tends to change, and the impact of 20 19 coronavirus disease on some cargoes will appear in the next few months.
This situation has led many investors to predict that as countries recover from the epidemic, suppressed supply will be difficult to meet the demand released after being suppressed. This may push the price of soft commodity futures to rise further.
The daily economy-the prices of soft commodities such as cocoa, coffee and sugar rebounded simultaneously.