Have recent events - the US-Iran “War”, strength of the Brazilian real, etc. - broken the sugar market out of its long-term downtrend?
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If sugar is to see a change in trend it will likely be due to funds starting to cover some of the record large short futures position.
Don’t Miss a Day: From crude oil to coffee, sign up free for Barchart’s best-in-class commodity analysis. Fundamentally, the market's forward curve remains in contango, indicating no short supply scare at this time.
Earlier this week, a long-time friend in the media reached out with an email asking about markets tied to the US-Iran War. Knowing my friend, I could read the fatigue in her email, “I haven’t had time to look at much else besides oil and gold, but what’s all this I’m hearing about sugar prices going up because of the US-Iran conflict?” She followed with, “Do you have any insight into why sugar prices have rallied? Is there a supply shortage? Or is the Middle East of particular concern when it comes to sugar supply and demand?”
