Sugar futures have extended their lows, yet again, to prices not seen in years as demand for the sweet-stuff reportedly remains subdued. Sugar futures ended the day down 14 points at $0.1510 per pound on the ICE Exchange.
Sugar futures, as well as crude oil futures, are two (of “22” total) commodity futures markets that comprise the Bloomberg Commodity Index. These two markets have helped slide the commodity index to a five-year low.
Barb Levy, chief director for The Fox Group’s futures division in Chicago, shared her fundamental analysis insight regarding the current sugar futures situation by stating, “Sugar futures continue to extend losses to the downside fueled by weak demand and good growing weather in Brazil. The sugar crop for this season is estimated to come in 473,000 metric tons larger than current demand needs.” Levy added, “Weakness across the commodity markets sparked by the sell-off in crude oil is also adding pressure to the downside.”
The technical trend for sugar futures is down with no bottom yet in sight. I will be looking for a way back in the “short-side” of this market as I believe I was prematurely stopped-out very early this morning.
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