Softs

Sugar: A Running of The Bulls

Posted 01/15/2020 9:23AM CTEric Scoles

Mar ’20 sugar futures start the day making solid gains (again) as the fundamental story continues driving prices higher. The estimated production deficit has gone from rumor, to supply threat, and is becoming an impending reality. We saw managed money fund traders at a record net short position around the end of summer/early fall, and as the story shifted from last year’s surplus to this year’s deficit, they had to cover their shorts, fueling a strong up-trend. Sugar has been pushing higher the last few months now and it seems buyers are becoming aggressive again. Mar ’20 sugar prices at the time of writing have reached a strong resistance point at about 14.50 and may pause for consolidation or even pull back, which could be an opportunity for those not yet long sugar. My analysis suggests there is still upside potential in this market and room for more bullish traders to join the run. **For a free consultation call my direct line at (312) 373-4875** you may also send me an email at escoles@rjofutures.com

Eric Scoles

Eric entered the workforce during the summer of 2007 as an apprentice tradesman just before the big crash and recession which followed. The impact of which strongly inspired his interest in the financial industry and began him as a student of the markets. Eric worked throughout the following years developing strong communication skills and risk management practices in the aviation and marketing industries before ultimately getting licensed and turning his passion into a career as a market strategist with RJO Futures.