Soft Commodities Are on Their Biggest Losing Streak in Two Years
- Bloomberg Softs Subindex Total Return slides 10% this year
- Citigroup sees rout as buying opportunities for consumers
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A gauge of soft commodity returns just capped its longest run of weekly losses since May 2017 as signs of ample supply of coffee and sugar collide with demand concerns.
Escalating U.S.-China trade tensions are fanning recession fears that are rippling through financial markets. In the case of cotton, price-supportive weather is being undermined by concern that new U.S. tariffs on imports of Chinese textiles will push up costs for consumers and erode fiber demand.