Sugar Rally?

The Sugar market has been in an extended downtrend for some time. Numerous factors including supply questions, currency valuations and outside market forces adding questions about demand have all contributed. However, multiple time frame charts offer the possibility of significant support. In addition, sugar production for Brazil’s Center-South region recently was disappointing. If a shift to more sugar cane for ethanol continues we believe the combination of technical chart formations and fundamental developments allows for lower risk entry points for a potentially significant rally. The Sugar market can be volatile and we are considering both futures and options strategies based on price objectives and risk tolerance.

See chart below (indicators included).

For additional information and risk parameters please contact Mitch LaRocca @ 972-387-0080 or mitch@dallascommodity.com

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