Sugar Prices Higher By 47 Points For Week
Sugar Futures—Sugar futures have now traded higher 7 out of the last 8 trading sessions settling last Friday in New York at 13.18 a pound while currently trading at 13.65 up about 47 points for the trading week hitting a 5 1/2 month high.
I have been recommending 3 bullish trades with an average price of 12.79 and if you took that trade continue to place the stop loss under the 10-day low which stands at 12.74 as an exit strategy, however in Monday’s trade that would be raised to 12.88 as the chart structural is excellent due to the low volatility. Fundamentally speaking sugar prices have moved steadily higher over the past 7 weeks as the outlook for smaller global supplies has spurred fund buying of sugar futures.
Tuesday’s WASDE report was bullish for sugar as the USDA cut its total U.S 2019/20 sugar production estimate by -3.8% to 8.28 NMT from last month’s estimate of 8.61 MMT.
Sugar prices are trading far above their 20 and 100 day moving average telling you that the trend is to the upside with the next major level of resistance between 13.80 / 14.00 as I think that could be tested next week as sugar is now riding the coattails of crude oil to the upside as that commodity is near a 3 month high as sugar is also used as a biodiesel so stay long.
CHART STRUCTURE: IMPROVING
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