Trade of the Week: short sugar

[MongiIG]

The price of sugar seems to be struggling around the $24 region again, a decade-long resistance area.

As such, we would like to go short the front month sugar no. 11 contract at $23.65 with a stop-loss at $24.65 and a downside target at $21.00.

Axel Rudolph FSTA | Senior Financial Analyst, London | Publication date: Monday 17 April 2023 

[Sparticle]

What is your expected timeline for this to move?

 

[Sparticle]

So you put a trade of the week out there but have no comment on it. Seeing as it went wrong straight out of the gates. I just wondered what your thoughts on the fundamentals behind this and the global macroeconomics driving the current price trend.

Are we seeing a new base established around 2400? Or are the vested interests just strying to shake out the shorters and shore up the price?

Comments welcome.