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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.
China has long been pursuing a state of independence, relying less on the global market for a variety resources. That independence is spilling over into agricultural commodities, which could sway the market.
As capital markets brace themselves for rate cuts, more volatility could be ahead as renewed recession fears are spooking investors in traditional asset classes. That said, it could be an opportune time to add agricultural commodities to portfolios.
While agricultural commodities have been trending lower as of late, they can still offer investors diversification benefits. Teucrium has a pair of funds that offer passive as well as active exposure to ag commodities.
Thailand is experiencing record heat, which is affecting the country's ability to harvest sugar cane amid the severe drought. The country accounts for 5% of global production, so the impact could put a tangible dent in the supply and thereby push prices higher.
Further upside in agricultural commodities will hinge on more heavy rains and harsh storms in Brazil as well as other parts of the world. If that's the case, investors may want to get ahead of the move higher with exposure to ag commodity funds from Teucrium.
Supply disruptions are supporting the stability of agricultural commodities. If there are additional limitations in grain production, it could potentially change the current downward trend and lead to higher prices in the future.
Teucrium Sugar Fund ETF CANE gapped down to open Monday's trading session but was looking to have found a potential local bottom from a technical analysis perspective.
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