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 earlier this week, we noted the crop problems in Brazil’s Centre-South as an additional reason to look for these short term opportunities.  From our Tuesday update: "Our extended view through March, however, is still calling for less precipitation relative to last year, and this should start to raise a flag when we are setting supply expectations for both current and next crop year. In the near term, the WTI range for fair value March09 sugar is in the 12.55 to 13.1 cent range, and the view for May09 is now between 12.95 and 13.4 cents, with additional short term upside potential." Feel free to contact us to discuss our market assumptions, and clients may also utilize the extended range outlooks in MYskeye for long range supply planning.

This entry was posted on Friday, February 6th, 2009 at 11:45 am and is filed under Agriculture, Biofuels, Global Commodities, Global Weather, Softs, Sugar, futures, weather. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.