Sugar could become bitterThe price is lateralizing in this channel composed by the static support at $ 11.50 and the resistance identified by 78.6% of Fibonacci set at $ 13.15.
This raw material, in the very short term, seems intent on retesting the high area of the channel just mentioned. On the weekly time frame it closed the week above the dynamic resistance identified by the EMA20 periods.
In the short/medium term, on the other hand, the fundamental structure shows some signs of uncertainty. This idea is regarding futures prices, with an excess of stocks in Mexico. Normally that country does not propose itself as a major player in the international sugar market. Now things could change, with the nation that will be forced to increase exports to many countries, including the United States. This in order to drain the huge levels of stored product.
INTL FCStone and S&P Global Platts have stated that in the 2019-2020 season, global consumption of sugar will exceed production and this is undoubtedly a good news for futures prices.
Sugar could become bitter and t
he price should not be able to break the resistance at $ 13.15. The price should be pushed back on the support area around 11.50. We do not recommend any trade on this raw material, but the target areas are:
in the very short term 13.15.
in the short/medium term 11.50.
