After trading mostly sideways in the month of May and reaching a contract high of 26.66 cents, benchmark Jul-23 #11 world raw sugar broke below its 20-day moving average the week of May 15. The contract fell through support from 25.10 to 24.90 on May 25 but rebounded to close May 26 at 25.37. Oct-23 #11 also traded lower at the end of May, closing May 25 at a five-week low of 24.60 but recovering to close May 26 at 25.15, still below the 20-day average of 25.48. For both contracts, RSI is neutral, MACD is strongly bearish, and the stochastic went from bearish to neutral. 

The dollar index reached 11-week highs the week of May 22. With mixed news—including signs that now new OPEC+ production cuts will be announced—crude has continued to trade sideways, finding support near its 20-day average at the end of the week. 

RSI is modestly bullish, MACD is bearish, and the stochastic, though bearish, is also signaling an oversold market. 

The full version of this commentary appeared on our IQ platform May 26, 2023. Further information, statistics, and pricing for the sugar market are available to IQ subscribers. Learn more about becoming a subscriber.

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