Among less heralded commodities exchange traded products that have spent time in the limelight this year, coffee exchange traded notes (ETNs), such as the iPath Dow Jones-UBS Coffee Total Return Sub-Index ETN (NYSEArca: JO), have been headline-grabbers.

Due to a familiar catalyst, that being poor weather in exporting countries, sugar ETNs look poised to grab some attention. Last week, the iPath Dow Jones-UBS Sugar Total Return Sub-Index ETN (NYSEArca: SGG) and the Tecrium Sugar Fund (NYSEArca: CANE) gained 5% and 4.4%, respectively.

Amid lingering drought conditions in Brazil, some traders are betting additional upside for sugar futures. Professional speculators showed net long positions in the commodity for the first time in a month last week, report Luzi Ann Javier and Debarati Roy for Bloomberg.

Earlier this year, SGG and CANE surged along with coffee ETNs due to harsh drought conditions in Brazil. Brazil is one of the largest commodity producers as 20% of the country’s workforce engages in agriculture, and over a quarter of the country’s exports earnings come from agricultural goods. [Brazil Drought Sweetens Sugar ETNs]

India, also one of the world’s largest sugar producers, previously trimmed supply as the government cabinet deferred a decision on subsidies to help mills export raw sugar. [Supply Glut Hampers Some Commodities ETFs]

“The net-bullish position in sugar climbed 0.8 percent to 76,477 futures and options contracts in the week to June 17,” Bloomberg reported, citing data from the U.S. Commodity Futures Trading Commission.

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