Sugar Shorts Sweetened As Price Plummets Amid Decreasing Demand And Mounting Supply
On Monday (20/6), sugar price suffered a loss after hitting the 3.5-year high of 20.13 a few days earlier, since the recent rise in sugar prices has adversely effected demand in China, the world’s largest importer of sugar. Additionally, the demand for this commodity is badly hurt by the upcoming 20% “sugar tax” on sweetened beverages from the Australian Greens. Meanwhile, the ample production from the mills has brought about sufficient availability of sugar, which is also contributing to the falling sugar price. On the hourly chart, the commodity is in a downtrend after hitting the resistance at 20.13. RSI (14) plunged to 59.2529, suggesting that the bullish trend is getting weaker. The price is anticipated to tick-down continuously.
Sell stop at 18.96, Take profit at 18.87, Stop loss at 19.16