Oct-23 #11 world raw sugar moved to a higher range the week of Aug. 28, breaking retracement resistance near 25.00 cents and the upper Bollinger Band Aug. 28, correcting lower midweek, and rebounding Sep. 1 to close at 25.81, a ten-week high. Mar-24 #11 also moved to two-month-plus highs, but its rebound on Sep 1. brought it to a contract high of 26.05 cents. For both contracts, RSI is bearish, MACD is strongly bullish, and the stochastic, though nominally bearish after Sep. 1’s runup, is moderately overbought.
Rebounding off its 20-day average, the dollar index rallied Aug. 31 and Sep. 1 to a three-month high, which should have weighed on sugar futures. Crude oil, however, supported sugar as a seven-session rally led the spot contract to its highest close since mid-November at $85.86. Job Economia raised its forecast Brazil April-March 2023/24 sugar crop estimate 2.3 MMT to a record 42.7 MMT on highly favorable weather to date.
The full version of this commentary appeared on our IQ platform Sep. 5, 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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