Sugar Action

Discussion in 'Commodity Futures' started by maninjapan, Oct 28, 2010.

  1. Newbie question here, maybe not specifically related to Sugar....
    But I am watch sugar at the moment and the price action is quite interesting. Spike up to the high and now it is stuck in about an 8 tick range for the past hour. a few big sell orders right on the high tick, just sitting there happy to get picked at slowly by the bidders. price comes back down a bit but zero follow through from the sellers.

    My question is, is this usually a more bearish signal, Buy side dont seem interested in following through and will soon give up bringing the price crashing down, or a more bullish signal. Sell side just trying to protect the high and the lack of confidence from the sell side to come in and sell it back down meaning its just a matter of time before the buyers eventually break through.

    Or is this a too close to call, need to wait for a break either way....

    Anyone else trading sugar at these levels, or watching it who might have a comment?
  2. emg


    price action does not work well in Agri markets due to lack of liquidity. Its all about fundamental. Buy and hold
  3. fair enough. Guess it was just easier to see some of the biggerorders sitting on the price ladder because it wasnt so crowded.
  4. bone

    bone ET Sponsor

    emg, you have a fundamental model and you trade it. fine.

    technical models work quite well in the softs, thank you very much.
  5. GJB


    Whilst I think sugar will still go higher myself, trading long at these levels has to be done very carefully, as you will see from the last time sugar hit 30 cents it went down very quickly.
  6. GJB


    High of the day (so far) 30.64, last seen in January 1981.
  7. Just curious - do you know what the low was since then?

    On the S&P where they say nobody made money in 10 years, they're looking at peak to peak. Anyone who bought the triple six's did great and anyone who shorted 1450 before that did great.
  8. GJB


    Low was 2.63 in 1985 just a 5 years after the high set in 1980 at 45.75.
  9. Surprise


    what about sugar Jul/13 it is at 17 cents , is it a good investment to buy into this backwardation for long term investing ?
  10. emg


    sugar is going up! sugar is catching up with the grain. for the past 5 yrs or when the U.S ethanol plants boomed, sugar was way undervalue.
    #10     Nov 10, 2010