Concerns over sugar crop in Brazil

Although the market is technically overbought which would normally indicate a possible reversal, at least in the short term sugar looks likely to make further gains due to supply concerns in Brazil and a harvest likely to end sooner.

A weak dollar and a rally in corn prices due to a worse than expected crop in the U.S.  also supported sugar and ethanol prices.  However, as open interest is lower in the midst of such a rally this could be an indication that once the rally has lost its steam there could be a reversal.

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