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Sugar Falls as Shipments from Brazil Rise

August 2, 2011 at 17:18 by Andriy Moraru

July sugar exports from Brazil (the world’s biggest sugarcane producers) climbed to the maximum in eight previous months, pushing the market prices for this commodity down to 2-week minimum.

From the technical analysis point of view, the decline is finely justified as a correction that followed a sharp rally in July. That rally was induced by the rumors that Brazilian production will decline.

The market analysts point out the fact that the buyers are currently afraid of the tons of supply that may get into the market anytime. If that happens, supply may overwhelm any demand, sending the prices down the hill.

September sugar futures fell from $29.02 to $28.27 per 100 pounds or more than 2.5 percent as of 17:17 GMT on ICE today. It’s the lowest level since July 18.

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