Sugar Futures Resume Losses on Supply

The Int’l Sugar Organization is suggesting sugar (futures) will continue to be under selling pressure into next year with global production exceeding demand for a third year in a row.  Sugar futures have been amongst the worst performing commodities markets this year.

Sugar futures are down approximately 11% this year as conditions improve in Brazil, China, and Australia.  Combined, sugar supply is expected to trump demand by almost 6M tons.

The market looks like there is plenty of sugar out there…more than an ample supply of sugar.  Try to be on the short (sugar futures) side until we see the fundamentals change,” said Christian Moreno, a commodities broker for HighGround Trading Group in Chicago, regarding the current sugar futures situation.

The trend for sugar futures remains down, however, in my work there is possible “bottoming” action.  I think there is more sugar futures upside potential than downside at these levels, but I will remain sidelined until a clearer picture unfolds


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