Sugar Continues Bullish Run

The main reason for higher prices is investors are looking at the possibility of a smaller crop in the country of Brazil coupled with the fact of strong worldwide demand therefore lowering supllies.

 

Sugar Futures–– Sugar futures in the March contract settled last Friday in New York at 23.00 a pound while currently trading at 23.64 up about 64 points for the trading week continuing its bullish trend as this market has been incredibly resilient to the downside.

Prices are hitting a fresh 4 year high this week as I’ve been sitting on the sidelines in this market as when the original broke out to the risk/reward was not in your favor; however as I have stated many times I’m certainly not recommending any type of short position as I do think sugar prices are going higher.

Sugar is trading far above its 20 and 100 day moving average as this trend is getting stronger on a weekly basis and if you are long a futures contract I would place my stop under the 10 day low around 22.55 which is about a $1,200 risk per contract plus slippage and commission at today’s price levels. The main reason for higher prices is investors are looking at the possibility of a smaller crop in the country of Brazil coupled with the fact of strong worldwide demand therefore lowering supllies.

Insides Futures

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