Sugar No.11 is beginning to show signs of a bottoming process. A review of the weekly chart for Sugar No.11 reveals the markets are beginning to challenge the downturn in prices which started in Feb11.
Three observations on the Sugar No.11 continuous price chart:
- Prices have broken through the long-running trend line from the Feb11 high.
- Notice the volume spike corresponding with the trend line break.
- Based on Commitment of Trader reports, hedgers and speculators have neutralized their respective positions during the first half of 2013, signaling exhaustion of the bulls and the bears.
Larger support appears in the 15 cts/lb range, which suggests still lower. However we are near the bottom of the trend and looking for signs of reversal.
Murphy & Company position models closed a short Sugar No.11 position on 10Sep13, collecting 6.2 cts/lb on the position.