Pakistani Production Lowers Sugar Futures

Sugar futures dropped to the lowest prices this year on perceived indications that the global sugar surplus may expand on forecasts of increased output in Pakistan’s sugar mills.  Just when I thought sugar futures were turning the corner upward…

Based on the Pakistan Sugar Mills Association’s chairman statement that production may jump 20% starting in November, and the possibility of global sugar output exceeding demand for the fourth straight year, I’d say look for more downside to follow.  Sugar futures are already down 14% this year.
           
Mason Ching, Automated Trading Manager, Global Futures Exchange & Trading Company in Encino, CA, had this to say regarding the current sugar futures situation, “…there is speculation that mills had not had time to amass more sugar due to a delayed harvest in Brazil because of rains and also because they are concentrating on producing ethanol.”  Mason adds, “(Sugar) futures might try to work lower this week.”

With the new lows for sugar futures made today, I must admit I was wrong on direction attempting to catch a long trade.  Now I will have to allow some type of sugar futures temporary rally for a low-risk initiation to the short-side.  I am grateful my “signal-filter” strategy didn’t get me in a position after-all, and disappointed I overrode my short signal…

Share

Comments are closed.

Free Report
Receive Actual Trading Statements, & a Special Insider Report: 5 Key Trading Foundation Points

Futures Trading Report
 

Please note that it
takes a minimum
of $10,000 to effectively
trade these portfolios!
 
*First Name:
*Last Name:
*E-mail:
*Day Phone with
Area Code:

Categories

Follow Us on Twitter