Upside Momentum in Sugar
While sugar prices remain in close proximity to last Thursday’s 11-week low, they have put together back-to-back positive daily results for the first time since mid-March. Although key outside markets remains volatile, sugar has bullish supply/demand factors that can help sustain upside momentum.
While near-term demand will remain a concern for the market, cocoa is probing for some type of near-term low. The Eurocurrency rallied to a 2-week high following a positive 5-year Euro zone household spending forecast from an ECB official.
Coffee has been pressured by near-term demand concerns which have made it difficult for prices to sustain upside momentum. With the market more than 20.00 cents below its late February highs, bullish longer-term supply factors are starting to underpin prices again.
The market is still operating under the positive technical influence of the March 26th reversal. The charts turn positive on a minor rally. Traders were talking about spec buying emerging after a devastating March.
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