Want a little sugar in your coffee?
Even if you prefer to drink your joe black, there’s a lot of reason to look to sugar after you look at coffee. The same Brazilian drought is also weighing on sugar crops, and the largest sugar producer in the nation just cut its forecast by 3 million metric tons thanks to bad weather.
Sugar prices are up about 20% off January lows, and investments like the iPath Dow Jones-AIG Sugar ETN (SGG) and the Teucrium Sugar Fund (CANE) that deal with sugar futures have put up similar numbers.
Of course, longer-term prices of sugar have been stable or declining since mid-2011, so before you scoop up this sweet investment you may want to take a hard look at your time horizon.