Waning Demand Hits Sugar Futures

One of Brazil’s main shipping agencies for sugar reported today that there is slowing demand for the sweet stuff.  They said the amount of sugar standing-by for shipping has decreased 12% over the past week.

Three of Brazil’s biggest shipping ports had only 2.8M metric tons of sugarto be exported yesterday, but that is reported down from 3.16M metric tons from just a week earlier.  Another reason for lessor demand is the fact that two major sugar producers took delivery of the July Sugar futures contracts recently, and a Swiss sugar broker says there isn’t any new demand…

Barb Levy, chief director for Futures & Options Xecution’s Futures Division in Chicago, stated today regarding the current sugar futures situation, “Sugar (futures) drew back today after a steady rise since the end of June, due to slowing demand.  Shipments out of Brazil fell off as much as 12% this week compared to recent weeks.”

The trend for sugar futures remains up, and there is no “top” yet in sight.  I am awaiting more of a pull-back, or a lower-risk trade before initiating another long sugar futures position.

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