There is an outlook from the European Commission that sees EU sugar production falling by more than 5% next season – France’s alone being the majority of the sugar decline by just over 3%. France is the dominate sugar producer in all of Europe.
The EU commission says that their sugar growers will produce 1M tones less for the 2012-2013 season which begins in October, than they had produced for the 2011-2012 sugar growing season. Again, France’s overseas territories predict a 280,000 ton sugar yield from 417,000 tones just a year earlier.
“The strong close for the month June in sugar (futures) may indicate that this market is trying to find a bottom with the focus turning more toward supply,” stated Kevin Craney, a senior commodities broker for RJO Futures in Chicago, regarding the current sugar futures situation.
The trend for sugar futures is technically UP – barely. I am looking for the next pull-back with sugar futures before re-entering long.