Sugar. The more I look into it, the more I see positive
headwinds for Sugar.
1. Technically, near multi-year lows with recent signs of
bottoming
2. Super El-Nino Risks later this year which may negatively
impact crop yields
3. Supply constraints in the Straits. Around 6% comes through
there so Supply is tightening
4. Ethanol. With Oil prices likely to be elevated for the
foreseeable future, Cane is being crushed for Ethanol (As an energy
source) rather than for Sugar. So it's a fantastic substitute in
many cases instead of paying higher Crude Prices
I remain long here and will trail up but with aggs, a combo of
positive technicals and positive macro conditions usually lead to
sweet gains.
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Sugar. The more I look
Posted by vimal on 23rd of Apr 2026 at 06:24 am
Sugar. The more I look into it, the more I see positive headwinds for Sugar.
1. Technically, near multi-year lows with recent signs of bottoming
2. Super El-Nino Risks later this year which may negatively impact crop yields
3. Supply constraints in the Straits. Around 6% comes through there so Supply is tightening
4. Ethanol. With Oil prices likely to be elevated for the foreseeable future, Cane is being crushed for Ethanol (As an energy source) rather than for Sugar. So it's a fantastic substitute in many cases instead of paying higher Crude Prices
I remain long here and will trail up but with aggs, a combo of positive technicals and positive macro conditions usually lead to sweet gains.