Slowing Brazilian Supply Boosts Sugar Futures

Sugar futures may be trying to turn the corner after making a spectacular high in mid-October.  It seems there are signs of dwindling supply of sugar coming from the worlds biggest exporter and producer of the sweet stuff.

A Brazilian sugar-industry group stated today in the first-half of November, sugar mills in the main growing region in Brazil’s South Center was able to process only 90% of their production from a year earlier.  Plus, companies there use more sugar-cane to produce ethanol for energy purposes – so the demand is there constantly.

Christian Moreno, a commodities broker for HighGround Trading Group in Chicago, had this to say regarding the current sugar futures situation,Sugar continues to be unable to have two positive closes in a row, as the last time that occurred for March futures was October 11th-14th.  The path of least resistance is pointing downward.” 

The technical trend for sugar futures is down, and it has been a steady downhill ride since mid-October when prices were 0.035 cents higher than they are now.  I really would prefer sugar futures to provide some type of rally before jumping back on-board.

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