October Sugar dropped over 170 points this week on fund and spec selling. The market was also pressured by the weakness in the crude oil as it dropped almost $19 this week. Technically, the market is working towards its 61.8% Fibonacci level around 12.20. We should find some support near this level. In addition, this market is oversold due to the sell off we have seen this week. Despite this recent sell-off, the longer-term outlook for this market is still friendly through 2008 and into 2009. However, the short to mid-term range could find prices rangebound once a near-term bottom is put in place. Support for October is at 12.15-12.20. Resistance is at 12.80.
Boyd Cruel
Alaron Research Team
800.216.1491
bcruel@alaron.com
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