March sugar started the week with a break lower after last weeks sideways action, continuing the trend lower from September’s high of 12.55. The sugar market has seen a large global surplus for the second year in a row along with pressure from rumors that India will export a large portion of their production. The market also is seeing pressure from an increasing global risk sentiment with weakness in currencies of sugar producing countries which has been offsetting any support seen from the energy markets. The current trend in sugar is to the downside with the next price target around contract lows of 10.83. Resistance comes in at 11.52 and 11.90 for the March contract. Support is around yesterday’s low of 11.10 and then the contract low from August at 10.83. Look for the trend lower to continue unless we see the dollar weaken and continued strength in the energy markets.
Sugar March ’18 Daily Chart