Another day and another set of losses with May’20 today falling to a new recent low at 13.43. While the macro was performing a touch better today Sugar continued to struggle and at present it is difficult to see how it makes a significant recovery in the near term. The morning was one of struggle and immediately undid yesterday’s late recovery as we slipped into the 13.60’s. A mid-session effort was made to push the price back upward, most likely by smaller specs, however it soon faltered and we resumed the slow downward trend that saw us eventually record session lows on the closing call. The ongoing lack of any meaningful consumer pricing suggests that there may yet be further to go to the downside in the near term, though given the scale of the recent pullback and oversold short term indicators we should be getting nearer to some consolidation. Either way, with funds reducing longs and unlikely to significantly re-instate these in the current environment it seems that the lower prices are here for a while.
