Sugar futures initially lifted-off today after a prominent analyst group increased their estimates for global sugar production making next season an eight-year high. Sugar futures has since backed-off and is only up 8 points for the day currently trading at .1459 cents per pound at the Intercontinental Exchange.
The sell-off in oil prices may also be contributing to the underlying value of certain commodities such as sugar – used to make biofuel. Sugar has been fluctuating around its 18-day moving average for well over a month now.
Laura Taylor, a senior market strategist at RJO Futures in Chicago, shared her fundamental view of the sugar futures market by stating, “The sugar market has been indecisive since early November.” Taylor adds, “Maybe this news is what the sugar trade has been looking for but only time will tell.”
The technical trend for sugar remains “up,” however at a crossroad with yesterday’s probe lower. If sugar futures can break below yesterday’s low (.1423) before reaching back up to its moving average (.1507) first, then that can change the trend to down.
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