Sugar reaches highest price since March, issues fresh Signal
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October Sugar posted a strong rally today (9/7), reaching its highest point since March. This gives me a fresh buy signal for sugar on the daily chart, making 3 buy signals since mid-August.
A lowering outlook on sugar production in Europe seemingly helped to support the rally. German agriculture officials report that refined sugar production for the 2010/11 season is likely to fall to roughly 3.67 million tonnes as compared with 4.2 million last year. The French farm ministry believes that the sugar beet crop this season will be down 13.3% from last year. These supply issues along with dryness concerns for next year's crop in Brazil have so far been enough to support the current uptrend.
The sugar weekly charts are bullish and may be suggesting a strong move above 25.20.
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