Sugar Futures--- Sugar futures in the March contract finished lower by 17 points at 12.84 a pound right near a 5 week low & if you have been following any of my previous blogs you understand that I have been bearish sugar as I think prices topped on October 24th at 14.24 as I still think there's room to run to the downside.
If you take a look at oil prices they have dropped 20% over the last 5 weeks as sugar is used as a bio diesel as I think the fundamental and technical picture for this commodity looks weak as the 50% retracement from the recent low to the recent high still stands at 12.50 as I would be surprised if that level is not tested possibly in tomorrows trade.
The U.S dollar was sharply higher once again today as the Federal Reserve said they will continue to raise interest rates as that is a negative towards all commodity prices as a 10 year note is now yielding 3.23% & looks to move higher in my opinion as I see no reason to own sugar at this time.
Sugar prices are trading below their 20 day but above their 100 day moving average as the trend is mixed as prices got ahead of themselves rallying over 300 points in a matter of a month following the coffee market to the upside, however I am certainly not recommending any type of bullish position at this time and if you are short stay short in my opinion.
CHART STRUCTURE: POOR
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