Mar ’20 Sugar futures continue to grind out higher prices despite negative outside market influences. Sugar is on track for its 5th week of gains with what is still a massive net spec short. The weekly charts show a clear trend in higher lows which indicates prices are well supported even with a recent sell-off in energies and the Brazilian real seeing 4-year lows. Reports continuously indicate an increasing global production deficit for 2019/20 from India, Thailand, Europe, and now the U.S. after recent storms. With prices already so low and a significant net spec short position, Sugar has a lot of fuel for a sustained rally, supported by strong fundamentals. My analysis suggests this market could see some exciting and impressive activity in the near-future.

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.