Russian Tariffs May Sweeten Sugar Bulls’ Outlook
Sugar: Sugar futures are moderately higher this morning as speculation that Russia will raise import duties this week is sparking a bid on raw Sugar futures. This news may be enough for October Sugar futures to finally move above stiff resistance at 10 cents per pound before the October contract expires on Friday. In early trade, October Sugar is trading at 9.92, up 0.04.
Precious Metals: Both Gold and Silver futures are trading sharply lower this morning, as a moderate rally in the U.S. Dollar and lower Oil prices have traders taking profits in the metals sector. In the past six weeks, December Gold has gained nearly $100 per ounce, so a moderate correction is not surprising. In early trade, December Gold is trading at $730.40, down $8.90, and December Silver is trading at $13.395, down $0.245.
Orange Juice: November FCOJ futures continue their climb, hitting six-week highs in early trade as speculative buying and weather concerns have supported prices. Traders are watching two tropical disturbances – one near the Windward Islands, the other near the Cape Verde Islands – for possible tropical storms formation. Orange juice stock in cold storage fell to 760.37 million pounds in August, down from 888.84 million pounds last year. In early trade, November Orange Juice was trading at 132.50, up 1.75.
Mike Zarembski, Senior Commodity Analyst
