Teucrium Sugar Fund ETF (ARCA: CANE) gapped down to open Monday’s trading session but was looking to have found a potential local bottom from a technical analysis perspective.
Sugar prices have been falling recently and on Friday, the agricultural commodity traded at a 1-week low. Sugar prices have historically been influenced by the current El Nino weather event, which historically brings heavy rains to Brazil and drought to India, affecting sugar crop production, according to The Globe and Mail.
Past instances of El Nino, such as those in 2015 and 2016, have led to significant price fluctuations in the sugar market, highlighting the potential impact of weather patterns on pricing dynamics, said the publication.
In terms of the commodity’s outlook for the short-to-mid-term, there are both bullish and bearish factors that could affect the price of sugar.
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