Sugar Futures Surge to a 6-Month High
Sugar futures rallied nearly 4% on Friday, over half a cent, to close the week at 14.18. Looks like we’ve got a new breakout to the upside!
Sugar futures continue their steady climb. (Source: Barchart.com)
Also bullish for sugar is continued strength in oil prices, which means Brazil will use more of its sugar for fuel. Last report I recall reading had Brazilian ethanol profitable at roughly $50 oil, so that’s the number I keep an eye on.
Finally demand for sugar is still projected to outpace supply this year, so we’ve got some strong underpinnings for a sustained rise in sugar in the months to come.
OJ Takes a Breather
Orange juice futures took a bit of a breather this week. Appears to be just a technical correction and profit taking, as I was not able to find any fundamental news to challenge our initial hypothesis for going long OJ.
Orange juice cooled off this week.
Other Commodity and Economic News
Current Futures Positions
Rolled the May contract over to July earlier in the week. Other than that, not much new.
Thinking about adding to OJ, sugar positions on further strength.
Date Position Qty Month/Yr Contract Entry Last Profit
04/08/09 Long 1 JUL 09 Orange Juice 81.95 85.00 $457.50
02/27/09 Long 1 JUL 09 Sugar #11 13.79 14.12 ($672.00)
Net Profit/Loss On Open Positions $1,286.30
Current Account Value: $26,020.69
Cashed out: $20,000.00
Total value: $46,020.69
Weekly return: 0.1%
2009 YTD return: -48.8% (Don’t call it a comeback!)
Prior year’s results:
Initial stake: $2,000.00