Increased Exports May Halt Sugar Futures Slide

According to a university research group in Brazil, even though sugar (futures) prices continued to slide, there were enough export sales to keep Brazil’s sugar trade profitable.  Brazil is the world’s largest producer of the sweet stuff.

The main growing region for sugar in Brazil’s southern region saw sugar cane processing jump 14% in the first-half of August.  Sugar harvesting is expected to be expedited with warm, dry weather forecasted for the next three weeks.

The harvest of sugar in Brazil has weighed on prices as more supply is expected than forecast from this region,” stated Kevin Craney, a senior commodities broker for RJO Futures in Chicago, regarding the current sugar futures situation.  Craney added, “The market put in fresh lows for the day, however, (sugar futures) support may be found as India’s crop may not meet expected production levels.”

The technical trend for sugar futures continues down, but it has been a stair stepping process to these lows.  I need a significant pull-back higher before I can take short sugar futures position.

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