March ICE Sugar

Sugar Pops; Could Be Early Clue Raw Commodity Sector is Bottoming

The raw commodity sector is still in an overall slump, which has helped to produce worldwide deflationary worries. However, just the past few trading sessions there are “green shoots” showing in a few markets that could be very early clues the raw commodity sector “bust” is coming to an end. Sugar, coffee and silver prices have seen good price rallies just recently, to suggest those individual markets have bottomed out. The sideways price action in other commodity futures markets, such as sector leader crude oil, suggests the bears in those markets have become exhausted and price bottoms could also be in place.