Teucrium Sugar Fund ETF (CANE) Consolidates as Global Outlook Diverges
The Teucrium Sugar Fund ETF (CANE) is facing consolidation as it inches slightly lower on declining volume, continuing its downtrend that began on Feb. 12. This comes as mixed signals emerge from the global sugar market, with Brazil’s sugar production on track while India’s production remains stagnant, potentially leading to a global supply glut, according to trader and supply chain services company Czarnikow.
Analysts are projecting a positive outlook for raw sugar, with expectations for the commodity to close at 24.5 cents per lb in 2024, marking a 20% increase from the previous year’s closing price. The higher demand for sugar, driven by population growth and the expanding global middle class, goes beyond its traditional use as a sweetener. Sugar is now being utilized in various industries such as ethanol, bio-material, ink, cement, glue, and alcohol.
Investors seeking exposure to the sugar market can turn to CANE, which allows them to track the price of sugar futures, providing diversification from the trends seen in the U.S. stock market. Recent trading activity suggests a potential local bottom, as the ETF attempted to form a dragonfly doji candlestick on the daily chart. At the same time, technical analysis indicates the presence of a descending channel pattern, with resistance levels set at $13.91 and $14.23, and support levels at $13.40 and $13.04.
Analyst comment
Positive news. The Teucrium Sugar Fund ETF (CANE) is consolidating amid mixed signals in the global sugar market. Analysts predict a positive outlook for raw sugar, with expectations for a 20% increase in its price by 2024. CANE provides diversification for investors seeking exposure to the sugar market. Technical analysis suggests potential support and resistance levels for the ETF.
