From Zacks Research: With sugar crop yields in decline, and global appetite for sugar continuing to rise, one sugar-focused ETF has been a huge beneficiary.
For investors seeking momentum, Teucrium Sugar ETF (NYSE:CANE) is probably on radar now. The fund just hit a 52-week high, which is up roughly 90% from its 52-week low price of $7.51/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:
CANE in Focus
CANE follows an index which tracks the daily changes of a weighted average of the closing prices for three futures contracts for sugar that are traded on ICE Futures US. The expense ratio of the fund is 1.79% (see all Agricultural ETFshere).
Why the Move
There was a steep spike in sugar prices in the international market on Friday, following a prediction of a sharp supply shortfall. As per various sources, dismal crop conditions in key sugar producing Asian countries and lowered production prospects in India, the world’s second largest producer, flared up deficit concerns and pushed up prices.
More Gains Ahead?
The fund has a positive weighted alpha of 77.70. A positive weighted alpha hints at more gains.
CANE shares rose $0.27 (+1.87%) to $14.50 in Monday morning trading. Year-to-date, CANE has now risen 44.14%.
This article is brought to you courtesy of Zacks Research.