Sugar Grinds Higher and Could Start to RallyPosted 11/20/2019 10:39AM CT |
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.