Sugar Futures Extend Lows on Global Processing

The sugar cane production is said to be surging in the world’s largest producing country (Brazil) and second-largest exporter of sugar (Thailand).  News of this revelation has caused sugar futures to extend lows last seen in 2010.

Thailand’s gov’t agency, the Office of Cane & Sugar Board, says they are processing two more metric tons of sugar than a year ago.  In Brazil, sugar-industry group Unica reports 31.5M tons of sugar being milled during the latter part of April compared with 9.4M tons processed a year earlier!
            
Traders remain bearish on sugar supplies, especially from Brazil, but the demand is said to be strong from North Africa and the Middle East as buyers get stocks in hand for Ramadan in July,” said Mason Ching, Automated Trading Manager, Global Futures Exchange & Trading Company in Encino, CA, regarding the current sugar futures situation.

The technical trend for sugar futures remains down, but the action at these levels have been too volatile for me to participate.  I need some significant pull-back, or a pause in volatility to get me back in sugar futures.

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