Sugar futures are on the march higher from last summer’s lows and since April when an industry expert helped propel the market higher when it was claimed “sugar prices are here to stay” because of a current world deficit. Sugar futures, however, are down 30 points today currently trading at $0.1942 per pound at the New York Intercontinental Exchange.
It is reportedly estimated that more than 22M tons of inventories over two growing seasons have been removed from supplies, and now the experts have once again altered the forecast for the world sugar production shortfall by another 1.1M tons. Much of this downward revision said to be due to droughts in both Central Europe and India.
“It appears that no matter what the combined two sugar growing seasons produce, sugar stocks will withdrawn by more than 22 million tons,” said Devin Brady, President of Progressive Trading Group in Sherman Oaks, CA, sharing his fundamental assessment of the sugar futures market. Brady added, “With this being the case for sugar (futures), stand-by for volatility ahead.”
The technical trend for sugar futures is “up” with a possible top in sight made in the last trading sessions in June. Sugar futures still “appear” strong, however some type of pullback is expected in this market given the recent gains it has made this past spring and early summer.
ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION.