In The Face Of Climate Change And Severe Drought, US Expects To Set Sugar Production Record, Now Farmers Want To Strike A New Deal With The Government
Portfolio Pulse from Johnny Rice
Despite global sugar production dropping by 2% last year due to extreme weather, the US is expected to set a new sugar production record of 9.39 million tonnes in the 2023-2024 year, as per USDA. Louisiana's sugarcane production has notably increased, contributing significantly to this record despite severe drought. Retail sugar prices are expected to rise by 5.6% in 2024, impacting both consumers and major food manufacturers. The American Sugar Alliance is advocating for a new farm bill to provide a safety net for farmers, addressing the increased production costs and disrupted supply chains. Investors are advised to consider commodity ETFs like Teucrium Sugar ETF (CANE) for simpler access to agricultural commodities.
February 09, 2024 | 5:59 pm
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POSITIVE IMPACT
Teucrium Sugar ETF (CANE) offers investors access to the sugar commodities market, which is expected to see price increases due to a new US sugar production record and rising production costs.
The expected increase in sugar prices due to a new production record and rising production costs directly impacts the value proposition of the Teucrium Sugar ETF (CANE), making it a potentially more attractive investment for those looking to capitalize on these market dynamics.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90