By IFCMarkets
Hurricane damage concerns are bullish for sugar prices
Concerns about damage to sugar cane fields in Caribbean and Florida are bullish for sugar prices. Will the sugar price continue rising?
Concerns about damage to sugar cane fields in Caribbean area and Florida are bullish for sugar prices. Oil and ethanol prices also influence raw sugar prices as higher ethanol prices make diverting cane to ethanol production more attractive. The harvest begins October 1. Florida sugar cane accounts for nearly a quarter of sugar produced in the United States, according to the US Department of Agriculture.
On the daily timeframe SUGAR: D1 has been retracing higher after hitting 19 month low in early June.
We believe the bullish momentum will continue after the price closes above upper boundary of Donchian channel at 14.81. This level can be used as an entry point for placing a pending order to sell. The stop loss can be placed below the fractal low at 14.1. After placing the order, the stop loss is to be moved every day to the next fractal high, following Parabolic signals. Thus, we are changing the probable profit/loss ratio to the breakeven point. If the price meets the stop loss level (14.81) without reaching the order (14.1), we recommend cancelling the position: the market sustains internal changes which were not taken into account.
Free Reports:
Position | Buy |
Sell stop | Above 14.81 |
Stop loss | Below 14.1 |
Market Analysis provided by IFCMarkets