As corn price have risen over the years, sugar price has declined. Corn sweeteners have become expensive and sugar has once again found its way on the labels of many products, with more to come. Raw sugar is the number one used commodity in the world, hence the futures you normally trade is called World Sugar No. 11. Sugar has also found its way into the bio-energies sector as several countries are using up supplies for ethanol.
Sugar is a slow working machine, grinding slowly up or down. It's hard to imagine trading $66 dollar sugar, but on 11-21-1974 the market topped at 66.00. Since this was monster all-time high, on should always look for changes of trend on the 21st of each month, it may not be the low or high for the month but it can offer major or minor events. (This is true with all markets) Two main points that should be watched bases this 11-21 high is 1/3rd points on the calendar, each year: March 21St. and July 23Rd and of course Nov 21St.
The highs back on 02-03-2006 is now the main bull market pivot at 1950. So one should also watch the 3Rd's of each month for additional changes of trend. (always give or take a few days) This is one of the reasons for the posting and the TopStep publication;
http://www.wdmatrix.com/TopStep/History/040307/ You can view the chart data here.
Currently the chart is sucking mud and has broken some key supports. The spot low is still intact, and should offer a bounce or two at least. The bottoms in sugar can be trying and slow and as volatility drops off, some 2008 calls should be added to your portfolio. That's all for now.
Disclaimer: All comments and posts are for learning purposes only. Don't use this information for your trading. Don't believe the comments or posts as accurate at all. Again this blog or any other site related are for learning purposes only.
