Forecasts for Robust Sugar Production Are Pressuring Prices. How to Trade Sugar Futures Here.
Sugar futures remain under pressure from expectations of higher global output, particularly from India and Brazil, driven by favorable weather and expanded acreage. Concerns over global trade tensions and potential economic slowdowns also weigh on prices. A break below 17.00 cents in July futures could trigger selling, targeting 15.00 cents. Resistance lies at 18.00 cents.
Fundamentally, sugar futures prices have been trending lower due to expectations for higher global sugar production this year, especially from India and Brazil, due to favorable moisture and increased sugar acreage. Worries about another escalation in global trade tensions that cause slowing world economic growth are also bearish for sugar prices.
A move in July sugar futures prices below chart support at 17.00 cents would become a selling opportunity. The downside price objective would be 15.00 cents, or below. Technical resistance, for which to place a protective buy stop just above, is located at 18.00 cents.
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Source : BarChart
