World sugar futures consolidating off recent highs?
After contract high on Sep. 5 and again Sep. 7, Oct-23 #11 world raw sugar tried to break resistance near 26.68 cents Sep. 8 and the upper Bollinger Band but instead fell to a close at 26.31, still within its recent elevated range. Mar-24 #11 traded similarly, failing to break the week’s earlier contract high of 26.47 cents Sep. 8 to settle at 26.60. For both these #11 contracts, RSI is bearish, MACD remained bullish, and the stochastic is overbought.
Poor rains in southeast Asia are supporting world sugar futures, with prices now even more strongly dependent on sugar exports from Brazil. The dollar index continued its rally the week of Sep. 4, closing Sep. 8 at a six-month high. Light crude traded sideways at the end of the week, near $87.50, a ten-month high.
Oct-23 #5 world white sugar was a bit more subdued, testing the lower end of its short-term range at the end of the week to close Sep. 8 at a six-day low of $726.80. RSI is neutral to bearish, MACD is bullish, and the stochastic showed a modest bearish crossover.
Nov-23 #16 domestic raw sugar moved slightly above its August close at 40.50 the week of Sep. 4, settling Sep. 8 at 41.60. RSI is neutral. MACD and the stochastic are bullish, though the latter is overbought.
The full version of this commentary appeared on our IQ platform Sep. 8, 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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