As you can see in the chart below sugar price formation has turned bearish. With price testing support once again we could very well see another bounce before a breakdown. Also, with Valentines just around the corner there could be some speculative buying in sugar in anticipation of an increase in demand.
We have seen some strong rallies the
second half of February the last few years but not enough to call it any
type of tradable trend if you ask me. And with REAL sugar not being
used in anything anymore after being replaced with the fake chemical
sweeteners it kind of voids the need for sugar during Valentines Day
making it a wash.
In short, sugar looks poised and ready for a breakdown in price to test the $12.50 level over the next month.