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The highest close since March 8th for October sugar along with positive influences from outside markets could attract increased buying support. The Indian monsoons are picking up steam for the monsoons, and traders see a continued good rain volume there as a potential negative force. However, short term demand news and speculative buying has helped support a steady short term uptrend. The market closed sharply higher on the session yesterday but the rallied failed to take out Friday’s highs. October sugar in London also closed higher with an inside trading day, as the strong spot demand for sugar and long lines to load at Brazil has helped support. Positive action in the US stock market along with weakness in the US dollar added to the bullish tone. Talk of rains at the ports in Brazil, which might slow the loading process, was also seen as a positive force. The COT reports on Friday showed that trend-following funds were net buyers of 3,318 contracts for the week ending July 20th, increasing their net long position to 64,343. Commodity index traders were net buyers of 3,867 contracts for the week, and the fund buying trend is seen as a short term positive force. The India Sugar Mills Association indicated yesterday that sugarcane planted acreage for the 2010/11 season has jumped to 5.28 million hectares, up 18.6% from last year.
TODAY’S GUIDANCE: The technical action remains positive with futures remaining in a tight and well defined uptrend. We question the ability of the market to see too much follow-through to the upside as the end user demand becomes saturated, but there is still no major sign of a top. Support is 18.27 for October sugar with resistance at 19.29. It will take a move under 18.09 to sour the chart outlook.
TODAY’S MARKET IDEAS: While a bit overbought, there is still no sign of a peak. Watch for bounce to at least 19.29, but the market may run out of positive news soon.
Sugar Market Commentary – 2010.07.07
by Terry Roggensack on July 27, 2010
Below is a sample of our Daily Commentary. To get this comment, and our daily coverage of 15 additional markets and trade ideas, visit futures-research.com for your free 2 week trial!
The highest close since March 8th for October sugar along with positive influences from outside markets could attract increased buying support. The Indian monsoons are picking up steam for the monsoons, and traders see a continued good rain volume there as a potential negative force. However, short term demand news and speculative buying has helped support a steady short term uptrend. The market closed sharply higher on the session yesterday but the rallied failed to take out Friday’s highs. October sugar in London also closed higher with an inside trading day, as the strong spot demand for sugar and long lines to load at Brazil has helped support. Positive action in the US stock market along with weakness in the US dollar added to the bullish tone. Talk of rains at the ports in Brazil, which might slow the loading process, was also seen as a positive force. The COT reports on Friday showed that trend-following funds were net buyers of 3,318 contracts for the week ending July 20th, increasing their net long position to 64,343. Commodity index traders were net buyers of 3,867 contracts for the week, and the fund buying trend is seen as a short term positive force. The India Sugar Mills Association indicated yesterday that sugarcane planted acreage for the 2010/11 season has jumped to 5.28 million hectares, up 18.6% from last year.
TODAY’S GUIDANCE: The technical action remains positive with futures remaining in a tight and well defined uptrend. We question the ability of the market to see too much follow-through to the upside as the end user demand becomes saturated, but there is still no major sign of a top. Support is 18.27 for October sugar with resistance at 19.29. It will take a move under 18.09 to sour the chart outlook.
TODAY’S MARKET IDEAS: While a bit overbought, there is still no sign of a peak. Watch for bounce to at least 19.29, but the market may run out of positive news soon.
Tags: Softs, Sugar
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