Mar 20’ sugar futures start the week strong by breaking above resistance and closing at the highest price since May of 2018. Looking at the monthly chart there appears to be a massive double bottom which could be very, very bullish. Fundamentals are still supportive with reports continuing the story of production deficit caused by severe weather in most major producing areas. Having closed above resistance I expect to see this market follow through and continue making gains. If you look at a monthly continuation chart going all the way back to 1990 you can see the next significant price level only at 15.15; if sugar prices close above that level this rally we have seen so far could be only the beginning of a huge bull market move. See the chart below. 

Sugar Mar ’20 Daily Chart

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.