Daily Analysis

October Sugar

October Sugar is expected to see some short-term selling pressure as longs lighten up on their positions because of forecasts for rain in key growing areas.

Rain is currently forecast for limited areas, but the longer-term forecast is for beneficial rains in October to improve yields.  Although the current weather situation is not expected to vastly improve the poor growing conditions, traders seem to be looking for any excuse to take profits.

Technically traders may be shopping for better prices to re-enter this market.  The most attractive level for traders to resume their aggressive buying is between 20.29 to 19.57.