May. 31 at 3:48 AM
$CANE $USO Sometimes markets tell you something before the headlines do.
Oil moved higher on Middle East tensions.
Gasoline and ethanol followed.
But sugar barely reacted.
And that's interesting because in Brazil, sugar directly competes with ethanol production. If energy prices keep rising, more sugarcane could end up as fuel and less as exported sugar.
I don't know if sugar has already found its bottom.
But I do know that when a commodity stops falling despite a difficult backdrop, it's worth paying attention.
