Daily Commodities Update: Sugar

Last week’s extremely bullish USDA report has set the tone for the grain futures complex, with all of the major crops running sharply higher in frenzied buying and short-covering ahead of what is projected to be another year of tight supplies. This puts agricultural futures back in the spotlight, and may help spark a resurgence in the tropical markets that have lost a bit of steam in recent weeks.

Among them, the most technically favorable chart for anticipating a renewal of the trend may be the Sugar futures, which are once again testing a major trend line on the longer term, 240-minute chart. The trend line is the upper resistance band of a Channel Down chart pattern which has contained the largely sideways trading action seen during much of March.

Any speculative buying the comes into the sugar markets at this level will likely trigger a technical breakout to the upper side of this resistance, and in doing so may bring a run back towards the 30-cents per pound level.

(Source: http://www.commoditiesmansion.com/general-commodities/daily-commodities-update-sugar-2/)