Raw-sugar futures, which climbed to a one-month high yesterday, are set to extend gains after climbing above the 50-day moving average, according to technical analysis by Sucden Financial Ltd.
The attached chart shows sugar for delivery in May settled at 18.77 cents a pound yesterday on ICE Futures U.S. New York, closing above the 50-day moving average of 18.52 cents for the first time this year. The pattern signals a rise to 19.8 cents, said Myrto Sokou, a senior research analyst at Sucden.
“There’s strong upside momentum,” Sokou said yesterday in a telephone interview from London. The next target for prices is 19.02 cents, followed by 19.21 cents, she said.
Through yesterday, futures slumped 21 percent in the past 12 months amid expectations for a third consecutive global surplus. Prices touched 18.81 cents yesterday, the highest since Feb. 5, as port congestion threatened to delay shipments from Brazil, the world’s biggest grower and exporter.
In technical analysis, investors and analysts study charts of trading patterns and prices to forecast changes in a security, commodity, currency or index.