Bad Weather in South America Threatens Crops. Commodity Prices Like Sugar, Soybeans and Coffee Fly

There’s nothing like some bad weather in South America to get the markets humming. Due to potential crop damage, Sugar, Soybeans and Coffee have shown tremendous gains in the last few months. Soybeans are particularly interesting because its market has gone from a contango to an inverted market. This means that participants in the market are willing to pay more for the front month futures contract then for the next month. Typically this is a sign of a shortage or, at minimum, a willingness to ...