May ’20 sugar futures are under continued pressure of long liquidation since the coronavirus wash-out in the markets started towards the end of February. The fundamentals however, are still strongly bullish in this market with the expected global production deficit this season, and potential for another next season. Sugar futures are much like coffee in that they will stick consistently to an established trend, and so the long liquidation continues until it runs out of steam. There appears to be firm support on the daily chart at 13.45 which I wouldn’t be surprised if we reach, but my analysis suggests that level is likely to hold. With such strong fundamentals I see sugar as being heavily undervalued at these prices, and from a technical perspective this market is over-sold. The selling should dry up soon, and when it does I think sugar futures will become an excellent bullish opportunity.