It's a Brave New World. Fertilizer was facing a shortage going into 2022 (like most commodities, it has had a undersized amount of investment, with tech seeing most of the in flows) but after the Putin YOLO (that's my ELI5), potash is now in shortage. Using that fact as a basis for expanding my commodity thesis to include more food commodities.
I picked CANE...
I know few of you might trade sugar cane but as its one of the most planted product in brazil I have to make that analysis... for moment the demand for it will increase and we can see a weakness in the dollar that will cause a strength on cane demand.
Not really a trade but more of a long term investment as a hedge against troubles to come in the economy and the return of the pendulum into inflation for years to come. Not sure if it is the absolute low but it looks like a good place to start.
Here is the big picture:
I was asleep and missed the breakout and retest. Look at that volume. It's running into some resistance here at $8.00. Feels like a buy, just waiting to see if it drops back down for another retest. Breakout over $8.00 seems like a clear buy.
Sugar , the commodity has been in a prolonged downtrend for some time now.
The Sugar ETN CANE offers one the opportunity to go LONG Sugar,
at extremely discounted and washed out price.
As a completely contrarian play.....
CANE LOW on 8/2/18 at 6.75, looks to me to be a WASHOUT LOW. USE that as a STOP,
Begin to accumulate. Long Trade. Upside Target; To Be...