The short crop in India coupled with the higher prices that world sugar futures are seeing may spur growers to increase plantings of sugarcane, as noted in a Bloomberg story this morning. The planting window still has another few weeks, so if May09 sugar remains strong (above 50 d moving age) the financial incentive [...]
ICE March sugar pushed to 13.65 cents (May reached 13.86) in trading today ahead of the expiration of the March contract on Friday. This is the highest level since Oct08. The rally is a confluence of part tag-along to the rally in energy (WTI crude currently up +4%), part perceived higher ethanol demand, and part [...]
Reports in the sugar market (ICE futures) today are focusing on the ‘news’ that production from India, the world’s second largest producer behind Brazil, will decrease. At this stage, this is not news that should be moving the market. We have known about these potential problems with the Indian crop since last year, and the [...]
ICE world sugar futures have hit 13.25 cents today. Our post earlier this week (as well as many others in recent weeks) stressed the low to mid 12 cent range as a good entry point to increase long positions for March/May, even if only for a short term move. In our weekly update to clients [...]
