As the world’s leading investment manager and financial market journalist, I bring you the latest insights on the sugar and soybeans market. In my recent publication on November 7, 2024, titled “Sugar, Now Soybeans,” I highlighted the potential for a significant spike in food prices in 2025 due to various factors such as weather, geopolitics, and demand.
Currently, sugar futures are showing promising signs, with sugar hitting new all-time highs. Additionally, soybeans are on the rise, indicating a potential breakout. The USDA forecasts a global sugar-ending stocks decline to a 13-year low, further supporting the bullish outlook for sugar prices.
Analyzing the futures chart, we see that sugar above 20 cents is a key level to watch as it clears the 200-day moving average. Crop estimates also suggest a potential decrease in global sugar supply, which could lead to a surge in demand and price.
For those looking to invest without trading futures, the ETF for sugar is a viable option. The daily chart indicators are bullish, including a phase change confirmation and momentum increase. However, the weekly chart suggests more work is needed for a sustained uptrend.
In summary, the outlook for sugar and soybeans is optimistic, with the potential for price spikes in the near future. Understanding these market dynamics can help investors make informed decisions and capitalize on potential opportunities in the commodities market.