Teucrium Sugar Fund

CANE

Market cap $11.3M

CANE ETF offers unique, direct exposure to world sugar prices via a portfolio of deferred ICE sugar futures contracts, mitigating roll risk and volatility. CANE is the only dedicated ETF for sugar, providing diversification and access to a key soft commodity without the complexities of futures trading. Key risks include low liquidity, a high expense ratio, complex tax treatment (K-1), and underperformance versus nearby contracts in bull markets.

A seemingly offhand comment by President Donald Trump may have caused more than political rumination; it's now causing turmoil in commodity markets, with impacts for ETF investors.

Before we talk sugar on our technical Monday, here is a reminder of the summary I wrote over the weekend concerning the Economic Modern Family. Summary Update in BOLD SPY and QQQ show no signs of recession and might have bottomed out needing a bit more follow-through SPY GOT FOLLOW-THRU BUT AND NOW BRUSHING THE 50-WMA.

Food prices worldwide continue to rise, hitting an 18-month apex recently. Whether this can translate to higher agricultural commodity prices as a whole remains to be seen.

It might seem like sugar and gold operate as two mutually exclusive commodities that don't have any correlation with one another. However, one market strategist has identified a pattern in the current environment that links the two when juxtaposed.

If this is truly shaping up to be a time for commodities, especially ones undervalued, then let's expand beyond gold and silver. Don't get me wrong.

Per a Finimize report, global food prices climbed higher during the month of September to reach the highest level in the past year and a half according to the United Nations Food and Agricultural Organization (FAO). Sugar prices led the pack, opening up opportunities to invest in rising prices or agricultural commodities in general.

Investors have been cheering China's latest efforts to shore up its economy with recent stimulus measures. In turn, this could provide a much-needed spark for agricultural commodities.

Wall Street delivered moderate performance last week.

Record heat in key parts around the globe could provide bullish momentum for sugar prices ahead of the holidays. This will bode well for funds investing in the commodity.