Sugar futures on the Intercontinental Exchange staged their biggest daily gain in nearly 23 years after forecasts suggested weather-disrupted supply may fall short of demand.
— CNBC (@CNBC) February 24, 2016
Here's the Sugar daily Chart
Is turnaround happening in Sugar prices? Well, the charts do suggest so. The first gap-up move happened in October when sugar rallied to 15.5 and then pulled back to fill the gap and now once again Sugar has staged a massive upmove. It does indicate that Bulls have momentum in their favor.
There is the fundamental reason: It's now confirmed that there will be supply deficit this year. It will be first such deficit in 5 years. It means this is the time to keep an eye on Sugar stocks in India be it Balrampur Chini, Renuka Sugar, EID Parry, Triveni.
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers