Sugar and coffee are two staples that most of us consume on a daily basis. Sugar is in most processed foods, and the caffeine in coffee is the source of energy for many of us each day.
While demand for sugar and coffee is ubiquitous around the globe, production of these important staples can only occur in proper climates. Therefore, only certain countries around the world are producing sugar cane or beet sugar and Robusta or Arabica coffee beans. When there are problems with weather or crop disease sugar and coffee can become highly volatile commodities. Up until 2015, both of these daily products were becoming cheaper by the day as global supplies swelled and a glut developed in both markets. However, beginning in August 2015 for sugar and March 2016 for coffee, both of these commodities began to show signs of life, and now they are at levels that are the highest in a long time.
The prospects for coffee and sugar continue to look good as the long-term trends in both commodities are in bull mode. However, each is at a different stage of its respective bull market, and while sugar has entered a period of consolidation, coffee is still putting in higher highs over recent sessions. Meanwhile, sugar has come a long way compared to coffee over the last few months.
