Chapter 19
Breakfast of Champions: Profiting from Coffee, Cocoa, Sugar, and Orange Juice
IN THIS CHAPTER
Recognizing the value of investing in coffee
Developing a trading strategy for cocoa
Evaluating the sugar markets
Outlining a strategy for trading orange juice
The commodities I cover in this chapter — coffee, cocoa, sugar, and frozen concentrated orange juice — are known as soft commodities. Soft commodities are commodities that are usually grown, as opposed to those that are mined (such as metals) or those that are raised (such as livestock). The softs, as they’re sometimes known, represent a significant portion of the commodities markets. They’re indispensable and cyclical, just like energy and metals, but they’re also unique because they’re edible and seasonal. Seasonality is a major distinguishing characteristic of soft commodities because they can be grown only during specific times of the year and in specific geographical locations — usually in tropical areas. (This is why these commodities are also known as tropical commodities.) In this chapter, I show you that there’s ...
Get Commodities For Dummies, 3rd Edition now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
