Sugar is one of the most important commodities of the world, and most of its supply is produced by sugarcane and sugar beet. Sugar cane is determining the global sugar prices which are providing about 80% of world sugar supply at the last years. For the global sugar supply, the leading countries are India, Brazil, the EU, China and Thailand. Consequently, supply and demand has an effect on the equilibrium prices from these countries. Sugar is one of important instruments of world food trade which makes it one of the most crucial food industry products. The price of sugar market is more stable than other instruments facilitates trade. The sugar market is affected from the government policies and climatic conditions because it’s an important product which is subsidized frequently.
As a general perspective, 2016 year is continuing with a serious positive trend. The people who are making buying – selling transactions on sugar market had earned a serious profit until the end of September generally. The price level of sugar market was at 14.45 level at the beginning of this year, but it reached to 22,80 level at the end of September. It makes sugar as the most popular commodity of this year.
Technical Analysis of Sugar Market
When we look at the big picture of the last 3 months, there are some general results. Technically, 21 and 34 - day exponential moving average are protecting their important, but we can see the role changed. After the decreasing at the end of July , averages became as a resistance level. The general expectations were negative during the July because the sugar market didn’t manage to try over of 20,00 level. 18,65 could be targeted as the critical threshold that could happen in the fall. This level was the correction level for the sugar market for a long time.
If you look at the September, the parity managed to climb over the 22,50 level. It was so critical for the sugar market. The rise are two scenarios that could be included in the agenda. The first of these moving averages on, so that you can climb over a barrier pricing 23,15. Along with this, parity may want to consider levels of 23,65 and 23,85. But in this case, because of the decline may be exposed to selling pressure as the reaction it should be noted that can appear newly.
- Date: 10 October 2016 Mon 00:35
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