Sugar with your Coffee? Fundamentals, Financials, and Softs Price Uncertainty

Genèvre Covindassamy, Michel A. Robe, Jonathan Wallen

Research output: Contribution to journalArticlepeer-review


We investigate empirically the main factors related to coffee and sugar (“softs”) price uncertainty. We link physical market fundamentals as well as financial variables to (i) market expectations of future price volatility and (ii) the extent to which these two commodities both co-move with equities. The physical market fundamentals that matter include the state of inventories, weather, and disease outbreaks. Beyond these fundamental factors, our results highlight the crucial role of financial market sentiment in understanding cross market linkages and the magnitude of softs market uncertainty.

Original languageEnglish (US)
Pages (from-to)744-765
Number of pages22
JournalJournal of Futures Markets
Issue number8
StatePublished - Aug 2017
Externally publishedYes

ASJC Scopus subject areas

  • Accounting
  • General Business, Management and Accounting
  • Finance
  • Economics and Econometrics


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