Sugar retreats as supplies remain abundant

(Futures Mag) – Futures closed lower and retreated back into the recent trading range. It looks like the market now is dealing with a failed breakout attempt higher. The fundamental situation still appears negative. Most traders still note that big supplies appear to be available to the market. Most buyers are not worried about prices and are not chasing rally attempts. Most statistical organizations continue to look for a big surplus production for the year. Production has been strong in Brazil so far this year, and reports say that the new crop production looks to be strong as well. Exports from Brazil continue to be very strong after the delayed start to the program. Big Brazil production remains negative to prices, and traders know that Indian and Thai production is in the market, too. The Thai crushing season is underway with good production expected, but the crushing pace remains slow. Traders wonder if and when India will cut offers to the market due to the lower prices and perhaps less than expected production due to some dry weather at the beginning of the growing season.

Overnight News: Scattered and light showers are expected in Brazil through this weekend. Temperatures should be near to above normal.

Chart Trends: Trends in New York are mixed. Support is at 1825, 1805, and 1770 March, and resistance is at 1895, 1905, and 1920 March. Trends in London are mixed. Support is at 480.00, 475.00, and 470.00 March, and resistance is at 497.00, 501.00, and 503.00 March.