A sugar miller’s group states sugar exports from Pakistan are expected to decline as much as 17% this year after record sales from last year took from inventories. Pakistan happens to be the world’s fourth-largest producer of the sweet-stuff.
The chairman for the Pakistan Sugar Mills Association estimates sugar exports dropping to only one-million metric tons from the fiscal year that began in October. This is down from 1.2M tons of sugar that were shipped in the 2012-2013 season.
Kevin Riordan, director of research at Capital Trading Group in Chicago, had this to say regarding the current sugar futures situation, “Regardless of the fact that the price levels for sugar (futures) currently are not attractive, it’s very important that Pakistan move its surplus sugar. This would enable it to pay the local farmers and take some excess supply out of the market.”
This news is coming at a time when sugar futures have recently rolled over into a technical down trend (in my work). I am looking to go short sugar futures, but only on a temporary spike in prices today.
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