SUGAR Analysis: Rising Brazil production bearish for sugar price

August 28, 2020

By IFCMarkets.com

Rising Brazil production bearish for sugar price

Mills in Brazil switch cane toward sugar or ethanol production depending on market prices. Brazil’s sugar inventory is building following the real’s slump against the dollar and weaker demand for cane-based ethanol during the coronavirus pandemic, according to Bloomberg. Mills shifted to sugar as a plunge by Brazil’s currency to a record low boosted sugar prices in reals for the industry. Brazil’s exports in the four months ended July surged 58% from a year earlier. Brazil is the top global sugar producer and exporter – it accounted for 27.1% of total sugar exports worth, with earnings amounting $5.2 billion in 2019. A rise in sugar supply is bearish for sugar prices.

Indicator VALUE Signal
RSI Neutral
MACD Sell
Donchian Channel Sell
MA(200) Buy
Fractals Neutral
Parabolic SAR Sell

 

Summary of technical analysis

Order Sell
Buy stop Below 12.9
Stop loss Above 13.5

 

Market Analysis provided by IFCMarkets.com


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