Sugar Futures---Sugar futures in the October contract settled last Friday in New York at 11.86 a pound while currently trading at 11.64 down about 22 points for the trading week continuing its bearish momentum as a descending triangle chart pattern has developed which predicts lower prices ahead.
At the current time I am not involved in this market as it has been very choppy as I don't have any recommendations in the soft commodities at the current time but they all remain weak in my opinion so sit on the sidelines. Sugar prices are trading under their 20 and 100 day moving average as the trend is lower and if you look at the daily chart the downtrend line also remains intact as the volatility has come to a crawl over the last several weeks.
Fundamentally speaking an increase in monsoon rain in India is negative for sugar prices after India's Meteorological Department last Thursday said India's July monsoon rains were 298.4 mm up 4.6% more than the long-term average coupled with weak worldwide demand.
Sugar prices can follow crude oil which hit a contract low in last week's trade as sugar is used is biodiesel so look at other markets with better potential so be patient as a longer-term bottom might be taking place, but there is no reason to buy at this time
CHART STRUCTURE: SOLID
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