Sugar Futures Find Support with Australian Weather

Sugar futures have held support after news concerning a possible Australian drought threatening its sugar harvest has been realized.  Sugar futures had been backing off this early month’s run-up in sugar prices.

A sugar producer’s group down under believes the sugar harvest in Queensland may be curbed substantially if the conditions spread to more than the already two-thirds of the province.  This specific area is important because Queensland produces nearly 95% of the sugar production.
           
Concerning is growing that that the current drought in Australia could affect next year sugar crop. The current harvest is 60% complete so this year’s crop should not be affected,”  said Kevin Riordan, director of research at Capital Trading Group in Chicago, regarding the current sugar futures situation.  Riordan added,However, if dry  conditions continue that could cause some issues for the 2014 crop year.”

The technical trend for sugar remains up.  I am looking to buy this current dip in sugar futures.

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