Thailand is experiencing record heat, which is affecting the country's ability to harvest sugar cane amid the severe drought. The country accounts for 5% of global production, so the impact could put a tangible dent in the supply and thereby push prices higher.
The push/pull factors of agricultural commodities could present investors with a prime buying opportunity. If investors want to diversify their portfolios with assets uncorrelated to traditional assets, the current market environment presents a compelling opportunity.
Further upside in agricultural commodities will hinge on more heavy rains and harsh storms in Brazil as well as other parts of the world. If that's the case, investors may want to get ahead of the move higher with exposure to ag commodity funds from Teucrium.
Supply disruptions are helping to keep agricultural commodities afloat. Further constraints in production of grains could even reverse the current downtrend, pushing prices higher in the long run.