May 13, 2020
By IFCMarkets
Sugar production declined in India
An additional factor for the possible growth of sugar prices may be an increase in bioethanol production in Brazil. Both products (sugar and biofuels) are made from sugar cane. Amid the collapse of world oil prices, Brazilian farmers in the second half of April increased the share of sugar cane processing into sugar to 45.8% from 30.9% in the same period last year. As a result, sugar production increased by 93%. This was reported by Unica. As oil quotes recover and grow, Brazil’s bioethanol production may increase due to reduced sugar production. The possible strengthening of the Brazilian real can also contribute to higher sugar prices.
| Indicator | VALUE | Signal |
|---|---|---|
| RSI | Neutral | |
| MACD | Buy | |
| MA(200) | Neutral | |
| Fractals | Neutral | |
| Parabolic SAR | Buy | |
| Bollinger Bands | Neutral |
Summary of technical analysis
| Order | Buy |
| Buy stop | Above 11 |
| Stop loss | Below 9,2 |
Market Analysis provided by IFCMarkets
