Pressure on Sugar

The market has been under pressure lately, mainly due to improving weather conditions over Brazilian sugar production areas. The monsoon season in India has gotten off to a slow start although industry officials there said that they will be able to export sugar during the 2012/2013 season. From a technical stand point there is trend line support around 2075-2050. A 61% retracement from the June low to the July high comes in at 2106. With rising energy prices, the drought situation in the U.S. and increased weather concerns in Eastern Europe and China I wouldn’t be surprised to see a bounce at these lower levels.

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