Will Climate Change Create A Sugar Famine? Longs Suggested As Global Supply Squeezed
Sugar retreated from four-year highs at 22.28 cents per pound reached earlier today. The commodity has surged more than 40% since the start of this year owing to the El Nino weather phenomenon that has disrupted production in major sugar producing countries and caused a shortfall in the 2015/2016 season.
Researchers are forecasting a global deficit of 7.2 metric tons in the upcoming 2016/17 season after a 7.9 metric ton shortage this season. Sugar output from Brazil’s main central and southern sugarcane growing regions in the second half of August dropped by 14% from the first half of last month to 2.54 metric tons.
Furthermore, a significant strengthening in the Brazilian Real (the local currency) based on belief that the new federal administration will succeed in stabilizing the economy and re-attracting investment, has made the local sugar price less attractive for farmers in the world’s top sugar producer.
Trade suggestion
Buy Stop at 22.10, Take profit at 22.28, Stop loss at 21.90
Sugar retreated from four-year highs at 22.28 cents per pound reached earlier today. The commodity has surged more than 40% since the start of this year owing to the El Nino weather phenomenon that has disrupted production in major sugar producing countries and caused a shortfall in the 2015/2016 season.
Researchers are forecasting a global deficit of 7.2 metric tons in the upcoming 2016/17 season after a 7.9 metric ton shortage this season. Sugar output from Brazil’s main central and southern sugarcane growing regions in the second half of August dropped by 14% from the first half of last month to 2.54 metric tons.
Furthermore, a significant strengthening in the Brazilian Real (the local currency) based on belief that the new federal administration will succeed in stabilizing the economy and re-attracting investment, has made the local sugar price less attractive for farmers in the world’s top sugar producer.
Trade suggestion
Buy Stop at 22.10, Take profit at 22.28, Stop loss at 21.90