Sugar Futures Poised To Move In 2009

March sugar futures ended the last trading day of 2008 with a positive note. March sugar futures closed .48 points higher at 11.77. Sugar prices have been working themselves into a tighter range the last few months. The market has tested the 10.50 level twice and held. I would want to be short for a trade if March sugar breaks that level again.

On the flip side, the market is showing some strength and it looks like it wants to move higher. Trading conditions have been thin lately, so we will have to wait until next week to get a clearer picture.

I like this market long-term to move much higher. I can’t see commodities rallying in the next few years without sugar. World demand will increase substantially in the years to come and it is unlikely the production will be able to keep pace. There should be some good trading opportunities in sugar in early 2009, but this is also a good market to buy for a long-term, multi-year hold.