On the weekly chart you can see sugar’s flight path over the past couple of months. You also can see how the drop in sugar prices was supported by big money liquidation by looking at the COT Disaggregated Report. The drop never would have been as smooth without these actions by big money that continued into last week. This past week we saw Producers go from -238,446 contracts net short to -212,038. Managed Money went from 98,297 contracts net long to 75,050 and Swap Dealers went from 133,669 contracts net long to 140,442.
So will sugar head below $19.50 or take off once again? Reading the COT will help answer this.
If you need help understanding how to understand how to use the NEW COT report to your benefit get instant access to my new e-book "What Lies Beneath ALL Trends". It is filled with eye opening information.Commercial Net Tracker instructions: This form tracks the Commitment of Traders (COT) data for the commodity futures market. This form "looks" at the most recent five weeks of COT data and provides visual indications of the data. A) If the current value is at a 12-month low, the cell will display a red/burgundy background. B) If the current value is at a 12-month high, the cell will display a green background. C) If the current value went from net negative to net positive, the cell will display a blue background (indicating a bullish condition). D) If the current value is both a 12-month high and also went from a net negative to a net positive, the background will be green. You should view the data with green backgrounds to determine if they also went from net negative to net positive.
Proceed to Page 3 for this week's detailed fundementals...