# Bullish on sugar



## BREND (29 December 2007)

*Fundamental:*

Sugar rose the most in a week on speculation investors such as index funds are buying the sweetener after the price fell this year.

The Dow Jones AIG Index will rebalance its basket of 19 commodities next month, Daniel Raab, managing director of AIG Financial Products Corp. in Wilton, Connecticut, said last week.

Funds that follow the index may have to buy more commodities that declined in 2007 to restore target weightings, Raab said. Sugar dropped 7.2 percent this year before today.

There's a lot of speculative interest in sugar, it's been down and remained in that range for a long time.

Sugar futures for March delivery rose 0.07 cent, or 0.6 percent, to 10.97 cents a pound on ICE Futures U.S., formerly known as the New York Board of Trade. It was the first gain since Dec. 20.

Sugar has climbed for three straight weeks on speculation funds that follow commodity indexes are buying the contracts. The UBS Bloomberg Constant Maturity Commodity Index has gained 23 percent this year.

What drove it up was a lot of heavy fund buying. Sugar will probably trade between 10.75 cents and 11.5 cents in the near term, he said.

Surging crude-oil prices and President George W. Bush's signing of legislation last week promoting ethanol use are spurring speculation that the U.S. may boost imports of the fuel. Brazil, the world's largest sugar producer, is diverting
more of its cane crop to ethanol.

*Technical:*

_*Daily chart*_

Double-bottom is formed in sugar chart, a sign that downtrend has ended and uptrend will proceed next. 

_*30-min chart*_

Sugar is trading uptrend based on shorter term chart

Sugar charts can be found in my blog.


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## noirua (29 December 2007)

Sugar looks a fair bet for 2008 and companies, the likes of CSR., may be very cheap, if it can get back to 2006 levels at US$18.


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## BREND (29 December 2007)

noirua said:


> Sugar looks a fair bet for 2008 and companies, the likes of CSR., may be very cheap, if it can get back to 2006 levels at US$18.




Yes sugar is a good bet for 2008, but sugar company may not be. Many sugar companies are still struggling with profitability, as price of sugar is still too cheap.


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## bvbfan (29 December 2007)

2007






2008


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## michael_selway (29 December 2007)

BREND said:


> *Fundamental:*
> 
> Sugar rose the most in a week on speculation investors such as index funds are buying the sweetener after the price fell this year.
> 
> ...




Do you have a good live up to date site for Sugar prices and price history charts?

thx

MS


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## BREND (30 December 2007)

Michael, try this: http://data.tradingcharts.com/futures/quotes/SB.html


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