Many Factors Influencing Sugar Futures

Even as sugar futures finds lower lows in its down-trend, sugar futures are managing to grind out higher pull-backs just before May Sugar futures expires.  May Sugar futures had been trading at a 0.06c discount under July Sugar futures during the latter part of last week, but the discount has turned into a penny premium as of recent.

Others in the industry are claiming sugar futures to be grinding higher in sympathy with rising grain prices.  Just yesterday corn futures managed to close LIMIT UP.            

News of strong (sugar) production potential from Unica in Brazil kept the selling pressure on (sugar futures).  Also, in my opinion, traders will remain bearish on supplies, especially from Brazil, and this has hurt New York (sugar) prices,” said Mason Ching, Automated Trading Manager, Global Futures Exchange & Trading Company in Encino, CA in a recent e-mail exchange, regarding the current sugar futures situation.  Ching added, “This is in contrast to London where (sugar) prices are holding better than those in New York for now.”

Sugar futures technical trend remains down with no “bottoming” formation yet in sight.  I’m still looking for short selling signals in this market.

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