Sugar Futures–-Sugar futures in the July contract is currently trading at 12.25 as I’m now recommending a bearish position while placing the stop loss above the April 22nd high of 13.05 as the risk is 80 points or $900 per contract plus slippage and commission as the soft commodity sector remains bearish. At the present time I’m also recommending a short position in cotton and also have a bearish bias in orange juice as the trend is your friend.
Sugar futures have now hit a 4 month low and I as I have talked about in previous blogs I think prices will break the January 3rd contract low of 11.99 as the E.U increased their sugar production by 7% as that fundamental news has put pressure on prices in the short-term.
The chart structure will start to improve in next week’s trade therefor the monetary risk will be lowered as the volatility has increased tremendously over the last several days.
Sugar prices are trading below their 20 and 100 day moving average as we have broken out of a 50-point trading range over the last 6 weeks and if 11.99 is broken I think there’s a possibility prices could trade substantially lower.
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