Apr 4, 2018 – Commodity Weekly: Crude, Corn forming double top, more downside for sugar ahead
While Crude corrected ahead of key resistance on easing ME tension, grain traders were surprised by the USDA corn and soybeans ending stocks (higher than estimates) and acreage estimates (surprisingly balanced). Sugar is on the other hand pressured by strong production in India despite Brazilian producers are shifting to ethanol and its a surprise its holding so well despite the oversupply.
In crude the huge speculative long can cause a drop so playing the double top could be interesting as well as in case of corn where the ending stocks and higher acreage well surprised the trade. Hard to say whats ahead of Sugar but if India will bring its overproduction to the global markets (along with Europe and Thailand) this could cause a retest of 2015 lows around 10 cents.
Good Luck and remember to watch your risk and be consistent
Mr. Tech Man
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