As rising food prices make headlines, Parmenion's Simon Brett explains why soft commodities are providing opportunities for investors.
Soft commodities generally refers to commodities that are grown, rather than mined. They play a key role in the futures market as they are often used to lock in the future price of crops and offer significant potential gains to speculative investors. Not so long ago it was rare to see anything written about them, it tended to be the rising price of gold, copper and silver. But these are now being matched by stories appearing in the media of rising food prices or “soft commodities”. The effect on the family budget of a rising weekly food bill is now an item on the main national news. A...
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