Did you see the corn report? What do you mean, corn? We're trading sugar. Yes, but they both end up in the cooking pot to make Ethanol. And there is a lot of corn out there this year; the growing season is looking great so far. We will see a tremendous amount of pressure on Sugar in the coming days, as cane production has been great also.

If you are not reading my market letter, you should have opened a short position on this new rally. Sugar should stay under pressure this entire growing season. This is a low-risk trade with a stop above the line. It will not move fast, and the dip will find support in the eight cent area. I know, I know, I have traded a lot of sugar at five cents. But just remember that the underpinning of this market is Biodiesel and fundamentals have changed, with five cent sugar being a thing of the past.  The risk reward is very right for this trade, being above my 3:1 risk reward ratio.

So use the chart below for your stop and entry, and let's try to make some money on this descending market trade.