08/12/08 FUTURES AND OPTIONS TRADING INVOLVES SUBSTANTIAL RISK OF LOSS AND IS NOT SUITABLE FOR ALL INVESTORS OR TRADERS.
Sugar prices rallied today due to speculation cane production numbers in Brazil could be lower than expected due to inclement weather. Long term bias is shifting to focus on the idea that a world surplus will be shrinking into 2009 and there is potential for a supply side squeeze looking beyond 2008 with more countries like the US interested in sugar-cane based ethanol production. Strictly technical we have seen 3 consecutive days of a lower closing price and with today providing yet again a lower low, a close higher than yesterday would indicate a reversal in the market. Generally 3 consecutive days of a lower high, lower low, and a lower close would indicate sell. Today's move would indicate reversal strictly technical.

For tomorrow,08/13/08, look for higher than anticipated 1% on the import prices data released at 830am eastern along with a falling dollar to push sugar prices probably towards a close above 14 cents. A dollar rally and a build in crude inventories would keep prices flat to lower. I RECOMMEND WHENEVER TRADING FUTURES ALWAYS USE A STOP LOSS ORDER. THE BELOW CHARTS AND INDICATORS ARE COURTESY OF BARCHART.COM FOR MORE IN DEPTH STRATEGIES YOU MAY REACH ME AT 888-325-9300.