In my July 11, 2025, Q2 Barchart wrap-up on the soft commodities sector, I concluded with the following:
Sugar and cotton futures remain under pressure, making lower highs and lower lows. However, the world sugar and cotton futures offer more value than the other softs, as prices are nowhere near historical highs. As the soft commodities are now in the second half of 2025, underperformance compared to the other commodity sectors continues, following a period in which softs led the asset class in 2023 and 2024. Commodity cyclicality is a powerful force. If sugar and cotton prices continue to reach lower lows, they could be excellent candidates for recovery, as low prices cause production and inventories to decline, leading to increased consumption and significant price bottoms.
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