Volatile Price Action in SugarPosted 10/11/2018 8:00AM CT |
Sugar for March delivery has seen some volatile price action as of late, trading at a 14-week high before closing negative on the day. The market has been surging and is up nearly 20% since hitting a bottom on September 27th. The recent strength in crude oil has provided support, as well as a rally in the Brazilian currency. Brazilian ethanol demand remains strong and while Indian productions remains unclear, Indian exports are expected to pick up. Momentum in sugar remains positive but are near overbought levels with near term support seen around 12.55 and resistance around the 200 day moving average at 13.16.
Sugar March ’19 Daily Chart