Sugar #11; Dire StraitsIt is the case once again for the typical, alternating, virtually daily news bites, decrying "world sugar deficits", "Brazilian yield collapse (due to drought; El Nino)", "record Brazilian Real strength", "rising crude oil prices" versus "record Brazilian harvests", "strengthening USD" and "falling crude prices due to recession fears". The song remains the same.
In reality;
- Brazilian harvest prospects are doing just fine;
- The recent Brazilian Real strength is likely experiencing it's end of days;
- Crude oil prices, fundamentally and technically, have a far better chance to turn south than otherwise. (See this post; )
Now, factor in the clearly (very) bearish technical outlook while also noting significant short covering, as of late. E.g., the makings of very favorable SHORT Entry here.
The Daily;
With last week's 5 strait days of breaking lower.
